Auto parts and accessories retailer O’Reilly Automotive (NASDAQ: ORLY) will be reporting earnings this Wednesday after market hours. Here’s what investors should know.
O'Reilly beat analysts’ revenue expectations last quarter, reporting revenues of $4.56 billion, up 10.2% year on year. It was a mixed quarter for the company, with a beat of analysts’ EPS estimates but full-year EPS guidance slightly missing analysts’ expectations.
Is O'Reilly a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting O'Reilly’s revenue to grow 7.4% year on year, improving from the 5.9% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. O'Reilly has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at O'Reilly’s peers in the automotive and marine retail segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Genuine Parts delivered year-on-year revenue growth of 6%, beating analysts’ expectations by 1.6%, and CarMax reported revenues up 6.2%, topping estimates by 8.2%. Genuine Parts traded down 1.7% following the results while CarMax’s stock price was unchanged.
Read our full analysis of Genuine Parts’s results here and CarMax’s results here.
Investors in the automotive and marine retail segment have had steady hands going into earnings, with share prices flat over the last month. O'Reilly’s stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $109.38 (compared to the current share price of $90).
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