- O’Reilly Automotive has increased its full-year EPS forecast range to $42.90 – $43.40, but this is still below market estimates of $44.08.
- Revenue forecast remains unchanged at $17.4 billion to $17.7 billion, close to the estimated $17.65 billion.
- Comparable sales are expected to grow by 2% to 4%, aligning closely with the market estimate of 3.32%.
- Gross profit margin projections are maintained between 51.2% and 51.7%, in line with the 51.4% forecast.
- Operating margin is anticipated to be between 19.2% and 19.7%, compared to the 19.6% estimate.
- Cash from operating activities is projected at $2.8 billion to $3.2 billion, slightly higher than the $3.09 billion estimate.
- Capital expenditure is expected at $1.2 billion to $1.3 billion, aligning closely with the $1.24 billion forecast.
- Free cash flow forecast is set between $1.6 billion and $1.9 billion, near the estimate of $1.86 billion.
- In the first quarter, EPS was $9.35, below the expected $9.84.
- First quarter sales reached $4.14 billion, slightly below the estimate of $4.17 billion.
- First quarter comparable sales growth of 3.6% exceeded the market estimate of 2.78%.
- The gross profit margin for the first quarter was on target at 51.3%.
- Operating income for the first quarter was $741.5 million, below the expected $786.9 million.
- Cash from operating activities for the first quarter exceeded expectations at $755.1 million compared to the $645 million estimate.
- The store count at the end of the first quarter was 6,416, slightly below the estimated 6,427.
- Total square footage reached 49.37 million, surpassing the expected 49.05 million.
- Mr. Beckham affirmed the full-year comparable store sales guidance range and maintained key underlying assumptions.
- The stock has 23 buy recommendations, 6 hold recommendations, and 1 sell recommendation.
O’Reilly Automotive on Smartkarma
Analyst coverage of O’Reilly Automotive on Smartkarma has been insightful, with Baptista Research providing in-depth analyses of the company’s recent performance and market strategies. In a report titled “O’Reilly Automotive: What Is The Hidden Profit Engine Driving Its Market Expansion?” by Baptista Research, the focus was on the company’s fourth quarter and full year 2024 results, along with their outlook for 2025. Despite facing challenges in the automotive aftermarket sector, O’Reilly Automotive managed to achieve modest growth by staying committed to customer service and showcasing strategic adaptability in a turbulent industry.
Furthermore, another report by Baptista Research, “O’Reilly Automotive Inc.: An Insight Into Its Industry Dynamics and Market Share Strategy! – Major Drivers,” delved into the company’s financial performance and strategic initiatives during the third quarter of 2024. The analysis highlighted O’Reilly Automotive‘s mixed results reflecting industry challenges and opportunities. While the company reported a 1.5% increase in comparable store sales, the growth was deemed below their usual high standards, indicating the evolving landscape of the automotive parts industry that O’Reilly Automotive is navigating.
A look at O’Reilly Automotive Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 0 | |
| Dividend | 1 | |
| Growth | 4 | |
| Resilience | 4 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 2.8 |
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
Analysts using the Smartkarma Smart Scores have rated O’Reilly Automotive positively for its long-term outlook. With impressive scores in Growth, Resilience, and Momentum, the company is positioned to thrive in the automotive aftermarket industry. O’Reilly’s strong momentum and resilience indicate its ability to adapt to changing market conditions and sustain growth over time. Additionally, the high growth score reflects the company’s potential for expanding its market share and profitability in the future.
O’Reilly Automotive‘s promising outlook is further supported by its focus on providing value to customers and maintaining a solid dividend. While the company may have room for improvement in terms of value, its overall Smart Score suggests a positive future trajectory. With a wide range of automotive parts, tools, and accessories, O’Reilly is well-positioned to appeal to both DIY customers and professional mechanics, solidifying its market presence across the United States.
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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