O’Reilly Automotive Earnings: Here’s Why the Stock is Up Now

O’Reilly Automotive Inc. (NASDAQ:ORLY) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 0.02%.

O’Reilly Automotive Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 37.39% to $1.58 in the quarter versus EPS of $1.15 in the year-earlier quarter.

Revenue: Rose 9.73% to $1.71 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: O’Reilly Automotive Inc. reported adjusted EPS income of $1.58 per share. By that measure, the company beat the mean analyst estimate of $1.50. It beat the average revenue estimate of $1.7 billion.

Quoting Management: “We are very pleased to again report another record breaking quarter highlighted by a 37% increase in diluted earnings per share to $1.58, representing our 18th consecutive quarter of 15% or greater adjusted diluted earnings per share growth,” commented Greg Henslee, President and CEO. “We generated an impressive 6.5% increase in comparable store sales, which exceeded the top end of our quarterly guidance range of 4% to 6%. Our unwavering commitment to providing consistent, excellent customer service drove outstanding sales results across all of our markets. We achieved a record quarterly gross margin of 50.8%, primarily driven by improvements in acquisition costs, product mix and pricing management. Our relentless focus on expense control, along with our strong gross margin results, generated a record quarterly operating margin of 17.3%, which was a 170 basis point improvement over the prior year. We continue to believe in the strength of the long-term demand drivers in our industry, and we are establishing our third quarter comparable store sales guidance at 4% to 6% and reiterating our full-year comparable store sales guidance of 3% to 5%. I would like to take this opportunity to thank each of our 60,000 Team Members for their hard work and commitment to O’Reilly’s continued success.”

Key Stats (on next page)…

Revenue increased 8.2% from $1.59 billion in the previous quarter. EPS increased 16.18% from $1.36 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $1.60 to a profit $1.61. For the current year, the average estimate has moved up from a profit of $5.74 to a profit of $5.79 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)