Spotting Winners: O'Reilly (NASDAQ:ORLY) And Auto Parts Retailer Stocks In Q2
As the craze of earnings season draws to a close, here's a look back at some of the most exciting (and some less so) results from Q2. Today we are looking at the auto parts retailer stocks, starting with O'Reilly (NASDAQ:ORLY).
Cars are complex machines that need maintenance and occasional repairs, and auto parts retailers cater to the professional mechanic as well as the do-it-yourself (DIY) fixer. Work on cars may entail replacing fluids, parts, or accessories, and these stores have the parts and accessories or these jobs. While e-commerce competition presents a risk, these stores have a leg up due to the combination of broad and deep selection as well as expertise provided by sales associates. Another change on the horizon could be the increasing penetration of electric vehicles.
The 5 auto parts retailer stocks we track reported a weak Q2; on average, revenues were in line with analyst consensus estimates, while on average next quarter revenue guidance was 2.61% under consensus. Tech multiples have reverted to the historical mean after reaching all time levels in early 2021 and auto parts retailer stocks have not been spared, with share prices down 17% since the previous earnings results, on average.
O'Reilly (NASDAQ:ORLY)
Serving both the DIY customer and professional mechanic, O’Reilly Automotive (NASDAQ:ORLY) is an auto parts and accessories retailer that sells everything from fuel pumps to car air fresheners to mufflers.
O'Reilly reported revenues of $4.07 billion, up 10.8% year on year, beating analyst expectations by 1.4%. It was a mixed quarter for the company, with revenue surpassing Wall Street's expectations, driven by a strong 9% same store sales growth that exceeded expectations. On the other hand, expenses were a bit higher than expected, leading to an operating profit miss. Additionally, CEO Greg Johnson will retire on January 31, 2024. The Board has selected Brad Beckham, the Company’s Co-President, to succeed Johnson as CEO.
O'Reilly achieved the fastest revenue growth of the whole group. The stock is down 5.21% since the results and currently trades at $917.
Is now the time to buy O'Reilly? Access our full analysis of the earnings results here, it's free.
Best Q2: AutoZone (NYSE:AZO)
Aiming to be a one-stop shop for the DIY customer, AutoZone (NYSE:AZO) is an auto parts and accessories retailer that sells everything from car batteries to windshield wiper fluid to brake pads.
AutoZone reported revenues of $5.69 billion, up 6.4% year on year, beating analyst expectations by 1.46%. It was a decent quarter for the company, with same-store sales, revenue, gross margin, operating profit, and EPS all exceeding expectations. On the other hand, domestic same-store sales missed, and the overall beat was driven by international markets.
AutoZone scored the strongest analyst estimates beat among its peers. The stock is up 1.74% since the results and currently trades at $2,568.74.
Is now the time to buy AutoZone? Access our full analysis of the earnings results here, it's free.
Weakest Q2: Monro (NASDAQ:MNRO)
Started as a single location in Rochester, New York, Monro (NASDAQ:MNRO) provides common auto services such as brake repairs, tire replacements, and oil changes.
Monro reported revenues of $310.8 million, down 5.24% year on year, missing analyst expectations by 3.69%. It was a weak quarter for the company, with underwhelming earnings guidance for the next quarter.
Monro had the weakest performance against analyst estimates and slowest revenue growth in the group. The stock is down 46% since the results and currently trades at $26.47.
Read our full analysis of Monro's results here.
Advance Auto Parts (NYSE:AAP)
Founded in Virginia in 1932, Advance Auto Parts (NYSE:AAP) is an auto parts and accessories retailer that sells everything from carburetors to motor oil to car floor mats.
Advance Auto Parts reported revenues of $2.69 billion, flat year on year, in line with analyst expectations. It was a decent quarter, with the company raising its full-year revenue guidance and same-store sales growth expectations.
The stock is down 22.7% since the results and currently trades at $52.09.
Read our full, actionable report on Advance Auto Parts here, it's free.
Genuine Parts (NYSE:GPC)
Largely targeting the professional customer, Genuine Parts (NYSE:GPC) sells auto and industrial parts such as batteries, belts, bearings, and machine fluids.
Genuine Parts reported revenues of $5.92 billion, up 5.58% year on year, missing analyst expectations by 0.74%. It was a decent quarter for the company, with EPS exceeding expectations. Gross margin also improved. On the other hand, revenue came in below consensus estimates.
The stock is down 12.7% since the results and currently trades at $146.69.
Read our full, actionable report on Genuine Parts here, it's free.
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The author has no position in any of the stocks mentioned
