Auto parts and accessories retailer O’Reilly Automotive (NASDAQ:ORLY) will be reporting results tomorrow after the bell. Here’s what investors should know.
O'Reilly missed analysts’ revenue expectations by 1.3% last quarter, reporting revenues of $4.36 billion, up 3.8% year on year. It was a mixed quarter for the company, with an impressive beat of analysts’ EBITDA 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.
This quarter, analysts are expecting O'Reilly’s revenue to grow 5.6% year on year to $4.05 billion, in line with the 5.1% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $9.74 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. O'Reilly has missed Wall Street’s revenue estimates four times over the last two years.
Looking at O'Reilly’s peers in the automotive and marine retail segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Monro’s revenues decreased 3.7% year on year, missing analysts’ expectations by 1.5%, and OneWater reported revenues up 3.2%, topping estimates by 11.7%. Monro traded down 10.9% following the results while OneWater was up 17.8%.
Read our full analysis of Monro’s results here and OneWater’s results here.
Valuation multiples for many growth stocks have not yet reverted to their early 2021 highs, but the market has been optimistic as of late due to a soft landing. This is an economic situation where rate hikes successfully quelled inflation but did not send the economy into a recession. Furthermore, recent rate cuts and Donald Trump's triumph in the 2024 Presidential election have been tailwinds for the market, and while some of the automotive and marine retail stocks have shown solid performance, the group has generally underpeformed, with share prices down 2.7% on average over the last month. O'Reilly is up 8.1% during the same time and is heading into earnings with an average analyst price target of $1,308 (compared to the current share price of $1,309).
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