Auto parts and accessories retailer O’Reilly Automotive (NASDAQ: ORLY) will be reporting results this Wednesday after market close. Here’s what to look for.
O'Reilly met analysts’ revenue expectations last quarter, reporting revenues of $4.41 billion, up 7.8% year on year. It was a slower quarter for the company, with a significant miss of analysts’ EBITDA estimates and full-year EPS guidance missing analysts’ expectations.
Is O'Reilly a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting O'Reilly’s revenue to grow 7.8% year on year, improving from the 4% increase it recorded in the same quarter last year.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. O'Reilly has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at O'Reilly’s peers in the automotive and marine retail segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Genuine Parts delivered year-on-year revenue growth of 6.8%, beating analysts’ expectations by 1.4%, and CarMax reported flat revenue, topping estimates by 3.9%. Genuine Parts’s stock price was unchanged after the resultswhile CarMax was down 17.5%.
Read our full analysis of Genuine Parts’s results here and CarMax’s results here.
There has been positive sentiment among investors in the automotive and marine retail segment, with share prices up 7.7% on average over the last month. O'Reilly’s stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $105.71 (compared to the current share price of $91.95).
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