Auto parts and accessories retailer O’Reilly Automotive (NASDAQ: ORLY) will be reporting earnings this Wednesday after the bell. Here’s what to look for.
O'Reilly met analysts’ revenue expectations last quarter, reporting revenues of $4.71 billion, up 7.8% year on year. It was a mixed quarter for the company, with a beat of analysts’ EPS estimates but full-year revenue guidance meeting 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, analysts are expecting O'Reilly’s revenue to grow 7.3% year on year to $4.39 billion, in line with the 6.9% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.72 per share.
Analysts covering the company have generally 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 six times over the last two years.
Looking at O'Reilly’s peers in the automotive and marine retail segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Monro’s revenues decreased 4% year on year, missing analysts’ expectations by 0.6%, and OneWater reported revenues up 1.3%, in line with consensus estimates. Monro traded down 5.2% following the results while OneWater’s stock price was unchanged.
Read our full analysis of Monro’s results here and OneWater’s results here.
There has been positive sentiment among investors in the automotive and marine retail segment, with share prices up 2.5% on average over the last month. O'Reilly is up 7.8% during the same time and is heading into earnings with an average analyst price target of $108.76 (compared to the current share price of $97.96).
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