O’Reilly Automotive Quarterly Earnings Sneak Peek

S&P 500 (NYSE:SPY) component O’Reilly Automotive, Inc. (NASDAQ:ORLY) will unveil its latest earnings on Wednesday, October 24, 2012. O’Reilly Automotive offers automotive aftermarket parts, tools, supplies, and accessories to individual customers and professional installers.

O’Reilly Automotive, Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for profit of $1.27 per share, a rise of 15.5% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved up from $1.26. Between one and three months ago, the average estimate moved up. It has dropped from $1.28 during the last month. Analysts are projecting profit to rise by 21.8% compared to last year’s $4.64.

Past Earnings Performance: Last quarter, the company beat estimates by one cent, coming in at net income of $1.15 a share versus the estimate of profit of $1.14 a share. It marked the fourth straight quarter of beating estimates.

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Stock Price Performance: Between July 25, 2012 and October 18, 2012, the stock price fell $10.18 (-11.3%), from $90.10 to $79.92. The stock price saw one of its best stretches over the last year between April 10, 2012 and April 18, 2012, when shares rose for seven straight days, increasing 6% (+$5.45) over that span. It saw one of its worst periods between October 5, 2012 and October 18, 2012 when shares fell for 10 straight days, dropping 7.4% (-$6.34) over that span.

A Look Back: In the second quarter, profit rose 9.2% to $146.1 million ($1.15 a share) from $133.8 million (96 cents a share) the year earlier, exceeding analyst expectations. Revenue rose 5.6% to $1.56 billion from $1.48 billion.

Wall St. Revenue Expectations: Analysts are projecting a rise of 5.2% in revenue from the year-earlier quarter to $1.62 billion.

Key Stats:

This upcoming earnings announcement will be a chance to build on positive earnings momentum over the last three quarters. Net income rose 16.3% in the fourth quarter of the last fiscal year and 43.9% in the first quarter before increasing again in the second quarter.

On the top line, the company is looking to build on four-straight revenue increases heading into this earnings announcement. Revenue rose 7.7% in the third quarter of the last fiscal year, 6.2% in the fourth quarter of the last fiscal year and 10.6% in the first quarter before increasing again in the second quarter.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.37 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, for every dollar the company owes in the short term, it has that figure available in assets that can be converted to cash in the short term. The company regressed in this liquidity measure from 1.57 in the first quarter to the last quarter driven in part by an increase in liabilities. Current liabilities increased 11.7% to $2.01 billion while assets decreased 2.3% to $2.76 billion.

Analyst Ratings: With 12 analysts rating the stock a buy, none rating it a sell and seven rating the stock a hold, there are indications of a bullish stance by analysts.

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

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