O’Reilly Automotive, Inc. Earnings Cheat Sheet: Third Straight Quarter of Rising Profit

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

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O’Reilly Automotive Earnings Cheat Sheet for the Second Quarter

Results: Net income for the auto parts store rose to $133.8 million (97 cents per share) vs. $99.6 million (71 cents per share) in the same quarter a year earlier. This marks a rise of 34.3% from the year earlier quarter.

Revenue: Rose 7.1% to $1.48 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: ORLY reported adjusted net income of 96 cents per share. By that measure, the company fell in line with the mean estimate of 96 cents per share. Analysts were expecting revenue of $1.49 billion.

Quoting Management: Ted Wise, COO and Co-President, commenting on the Company’s second quarter, stated, “During the quarter, we opened 44 new stores, which brings our total to 99 new store openings for the first half of 2011, keeping us on track to reach our goal of 170 net, new store openings in 2011. Our strong performance is reflective of the hard work and dedication of our 49,000 Team Members. I would like to thank each of them for all of their contributions to our Company’s success.”

Key Stats:

The company has now seen net income rise in three straight quarters. In the first quarter, net income rose 5.1% and in the fourth quarter of the last fiscal year, the figure rose 47%.

From the first quarter, the company’s current liabilities fell to $1 million from $1.32 billion.

Gross margin shrank 0.1 percentage point to 48.6%. The contraction appeared to be driven by increased costs, which rose 7.3% from the year earlier quarter while revenue rose 7.1%.

Revenue has risen the past four quarters. Revenue increased 8% to $1.38 billion in the first quarter. The figure rose 11.6% in the fourth quarter of the last fiscal year from the year earlier and climbed 13.3% in the third quarter of the last fiscal year from the year-ago quarter.

The company fell in line with estimates last quarter after topping expectations in the previous two quarters. In the first quarter, it topped the mark by 5 cents, and in the fourth quarter of the last fiscal year, it was ahead by 5 cents.

Competitors to Watch: Advance Auto Parts, Inc. (NYSE:AAP), AutoZone, Inc. (NYSE:AZO), The Pep Boys – Manny, Moe & Jack (NYSE:PBY), Ford (NYSE:F), Toyota (NYSE:TM), General Motors (NYSE:GM) and U.S. Auto Parts Network, Inc. (NASDAQ:PRTS).

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(Source: Xignite Financials)

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