- O’Reilly Automotive has increased its forecast for the FY EPS, which now ranges from $41.35 to $41.85, up from previous forecasts of $41.05 to $41.55. However, this falls short of the estimated $42.42.
- The company’s predicted operating margin remains unchanged at 19.7% to 20.2%, hitting the estimated 20%.
- Revenue estimates for the year also remain steady, between $16.8 billion and $17.1 billion, in line with the estimated $16.95 billion.
- Comparable sales are still expected to increase by 3% to 5%, almost meeting the estimated increase of 4.1%.
- Gross profit margin continues to be forecasted at 51% to 51.5%, matching the estimated 51.4%.
- Cash from operating activities are projected to be between $2.7 billion and $3.1 billion, aligning with the estimated $2.97 billion.
- Capital expenditure is forecasted between $900 million and $1.0 billion, close to the estimated $948.2 million.
- First quarter results register EPS at $9.20, compared to the previous year’s $8.28, slightly below the estimated $9.29.
- Sales for the first quarter reached $3.98 billion, a 7.2% y/y increase, barely missing the estimated $3.99 billion.
- Comparable sales in the first quarter rose by 3.4%, compared to a 10.8% increase in the previous year, falling short of the estimated 4.03% increase.
- Gross profit margin stood at 51.2%, up from 51% in the previous year, meeting the estimated 51.2%.
- Operating income was $752.5 million, a 5% increase y/y, lower than the estimated $766.3 million.
- Cash from operating activities was $704.2 million, a decrease of 1.3% y/y, narrowly surpassing the estimated $702.4 million.
- The company’s store count at the end of the quarter was 6,217, up 3.1% y/y, slightly below the estimated 6,218.
- Store square footage for the quarter was 47.14 million, a 4.5% increase y/y, exceeding the estimated 47.09 million.
O’Reilly Automotive on Smartkarma
Analyst coverage of O’Reilly Automotive on Smartkarma has highlighted positive sentiments regarding the company’s recent performance and expansion efforts. Baptista Research‘s report titled “O’Reilly Automotive: Expansion into Canada With Groupe Del Vasto Acquisition & Other Major Drivers” applauds the company for achieving robust results in the fourth quarter and full-year of 2023. The report mentions O’Reilly Automotive‘s strong growth trajectory and successful capitalization on industry trends, with a notable 7.9% increase in full-year comparable store sales. This bullish outlook indicates confidence in the company’s strategic direction and market positioning.
Value Investors Club also published a favorable report on O’Reilly Automotive, emphasizing the company’s significant presence in the automotive aftermarket parts and services sector. With over 6,000 stores across the US and Mexico, O’Reilly Automotive is recognized as one of the industry’s largest retailers and suppliers. The report underscores the company’s comprehensive offerings catering to both do-it-yourself customers and professionals servicing a wide range of vehicles. These analyses collectively present a positive outlook on O’Reilly Automotive‘s market position, growth prospects, and operational efficiency.
A look at O’Reilly Automotive Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 0 | |
| Dividend | 1 | |
| Growth | 4 | |
| Resilience | 5 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 3.0 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Looking ahead, O’Reilly Automotive‘s long-term outlook appears promising based on the Smartkarma Smart Scores. With a solid Growth score of 4, indicating strong potential for expansion, and high Resilience and Momentum scores of 5 each, the company seems well-equipped to weather market challenges and maintain its positive trajectory. While O’Reilly doesn’t score high on the Value factor, its focus on delivering consistent growth and its ability to adapt to changing market conditions bode well for its future performance.
O’Reilly Automotive, Inc., a company that specializes in retailing and supplying automotive aftermarket parts, tools, supplies, equipment, and accessories, caters to both DIY customers and professional mechanics. With a strong presence across the United States, the company’s emphasis on growth, resilience, and momentum positions it favorably in the competitive automotive industry. Overall, O’Reilly Automotive‘s strategic approach and commitment to meeting the needs of diverse customer segments suggest a promising outlook for long-term success.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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