O’Reilly Auto Earnings: Profit Rises Year-Over-Year

S&P 500 (NYSE:SPY) component O’Reilly Automotive Inc. (NASDAQ:ORLY) reported its results for the second quarter. O’Reilly Automotive offers automotive aftermarket parts, tools, supplies, and accessories to individual customers and professional installers.

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O’Reilly Automotive Inc. Earnings Cheat Sheet

Results: Net income for O’Reilly Automotive Inc. rose to $146.1 million ($1.15 per share) vs. $133.8 million (96 cents per share) in the same quarter a year earlier. This marks a rise of 9.2% from the year-earlier quarter.

Revenue: Rose 5.6% to $1.56 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: O’Reilly Automotive Inc. was about in line with expectations as the mean analyst estimate of $1.14 per share. Analysts were expecting revenue of $1.57 billion.

Quoting Management: “We are pleased to report solid second quarter results, highlighted by a 20% increase in diluted earnings per share, which was driven by a 56 basis point increase in operating margin,” stated Greg Henslee, O’Reilly’s CEO and Co-President. “Despite the challenging environment during the quarter, our continued commitment to providing industry-leading customer service allowed us to profitably grow sales with a comparable store sales increase of 2.5%, while also increasing our gross profit by 132 basis points. I would like to thank our over 52,000 Team Members for their continued dedication and hard work – your commitment to providing the highest level of customer service in the industry remains the key to our current and long-term success.”

Key Stats:

The company has now seen its net income rise for three quarters in a row. In the first quarter, net income rose 43.9% and in the fourth quarter of the last fiscal year, the figure rose 16.3%.

The company has now topped analyst estimates for the last four quarters. It beat the mark by 10 cents in the first quarter, by 8 cents in the fourth quarter of the last fiscal year, and by 10 cents in the third quarter of the last fiscal year.

Revenue has risen for the last four quarters. Revenue increased 10.6% to $1.53 billion in the first quarter. The figure rose 6.2% in the fourth quarter of the last fiscal year from the year earlier and climbed 7.7% in the third quarter of the last fiscal year from the year-ago quarter.

Looking Forward: Over the last 30 days, analysts have not been optimistic about the company’s next-quarter performance. The average estimate for the third quarter is now $1.26 per share, down from $1.29. For the fiscal year, the average estimate has moved down from $4.68 a share to $4.58 over the last thirty days.

Competitors to Watch: Advance Auto Parts, Inc., AutoZone, Inc., The Pep Boys – Manny, Moe & Jack, U.S. Auto Parts Network, Inc., Pick-Ups Plus, Inc., Tilden Associates Inc, Midnight Hldgs. Group Inc, Aftermarket Enterprises Inc, and Halfords Group plc.

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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