O’Reilly Automotive Earnings: Profit Increases Again

S&P 500 (NYSE:SPY) component O’Reilly Automotive Inc. (NASDAQ:ORLY) reported its results for the third 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 $159.3 million ($1.32 per share) vs. $148.4 million ($1.10 per share) in the same quarter a year earlier. This marks a rise of 7.3% from the year-earlier quarter.

Revenue: Rose 4.3% to $1.6 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: O’Reilly Automotive Inc. beat the mean analyst estimate of $1.27 per share. Analysts were expecting revenue of $1.57 billion.

Quoting Management: “We are pleased to report solid third quarter earnings, highlighted by a record high third quarter operating margin of 16.4%. Our diluted earnings per share increased 20% to $1.32, representing our 15th consecutive quarter of adjusted diluted earnings per share growth greater than 15%. I would like to take this opportunity to thank all of our Team Members for their hard work and their continued commitment to providing the highest levels of service in our industry,” commented Greg Henslee, O’Reilly’s CEO and Co-President.

Key Stats:

The company has now seen its net income increase for three consecutive quarters. In the second quarter, net income rose 9.2% and in the first quarter, the figure rose 43.9%.

The company has now surpassed analyst estimates for four quarters in a row. It beat the mark by one cent in the second quarter, by 10 cents in the first quarter, and by 8 cents in the fourth quarter of the last fiscal year.

Revenue has risen the past four quarters. Revenue increased 5.6% to $1.56 billion in the second quarter. The figure rose 10.6% in the first quarter from the year earlier and climbed 6.2% in the fourth quarter of the last fiscal year from the year-ago quarter.

Looking Forward: For next quarter, analysts have a more positive outlook about the company’s expected results. The average estimate for the fourth quarter is $1.07 per share, up from $1.05 ninety days ago. The average estimate for the fiscal year is $4.63 per share, a rise from $4.61 ninety days ago.

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

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