In the last 10 years, the S&P 500 has done historically well for investors, producing an annualized total return of 13.2%. That's well ahead of the 10% yearly average over the very long term.But investors will notice that even some boring businesses have crushed the benchmark's return. Look at aftermarket auto parts retailer O'Reilly Automotive (ORLY 1.05%). Its shares have increased at a compound annual rate of 20.4% in the past decade.Is this consumer staples stock a no-brainer buying opportunity in 2025? ...

Earnings Release Date – Wednesday, February 5, 2025, after 3:30 p.m. Central TimeConference Call Date – Thursday, February 6, 2025, at 10:00 a.m. Central Time SPRINGFIELD, Mo., Jan. 02, 2025 (GLOBE NEWSWIRE) -- O’Reilly Automotive, Inc. (the “Company” or “O’Reilly”) (Nasdaq: ORLY), a leading retailer in the automotive aftermarket industry, announces the release date for its fourth quarter and full-year 2024 results as Wednesday, February 5, 2025, with a conference call to follow on Thursday, February 6, 202 ...

A month has gone by since the last earnings report for O'Reilly Automotive (ORLY) . Shares have added about 0.4% in that time frame, underperforming the S&P 500.Will the recent positive trend continue leading up to its next earnings release, or is O'Reilly Automotive due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts. O'Reilly Q3 Earnings Miss Expecta ...

Past returns don't guarantee future results, but this company has proven its worth.The S&P 500 has climbed at a solid clip in recent years. Since November 2014, the index has generated a total return of 253% (about 13.2% annualized per year), which is above its typical annualized gain of roughly 10%.There's one unstoppable stock, though, that has crushed the broader market in the past decade, rising an impressive 581% during that time (as of Nov. 11). This would have turned a $10,000 investment into $68,000 ...

O’Reilly Automotive, Inc. ORLY reported third-quarter financial results and issued FY24 EPS guidance below estimates, after the closing bell on Wednesday.O’Reilly Automotive reported quarterly earnings of $11.41 per share which missed the analyst consensus estimate of $11.61 per share. The company reported quarterly sales of $4.36 billion which missed the analyst consensus estimate of $4.43 billion.The company said it sees FY24 total revenue of $16.6 billion to $16.8 billion, versus estimates of $16.75 bill ...

Financial Data and Key Metrics Changes - Comparable store sales increased by 1.5% in Q3 2024, following increases of 8.7% and 7.6% in Q3 2023 and 2022 respectively [6][13] - Total revenues for 2024 are expected to be between $16.6 billion and $16.8 billion [25] - Diluted EPS for the quarter increased by 6%, with year-to-date diluted EPS growth at 7% [26] - The effective tax rate for Q3 was 21.5%, down from 23.2% in Q3 2023 [25][26] Business Line Data and Key Metrics Changes - Professional business saw mid-single-digit comparable store sales growth, driven primarily by increased ticket counts [7][8] - DIY comparable store sales were down approximately 1% due to negative ticket count comps [8] - Gross margin for Q3 was 51.6%, up 18 basis points from Q3 2023 [15][16] - SG&A per store grew by 4.2% in Q3, with expectations for full-year growth between 3.5% to 4% [17][18] Market Data and Key Metrics Changes - The North American car park continues to grow and age, leading to sustained demand for vehicle maintenance [11][12] - The company is experiencing softness in discretionary categories, which are not primary drivers of comparable store sales performance [9][10] Company Strategy and Development Direction - The company is tightening its full-year comparable store sales guidance to an increase of 2% to 3% [13] - Plans to open 190 to 200 new stores in 2024, with a target of 200 to 210 new stores for 2025 [20][21] - The company remains committed to providing excellent customer service and maintaining strong relationships with customers [10][14] Management's Comments on Operating Environment and Future Outlook - Management believes current industry headwinds will be short-lived, with confidence in long-term demand drivers [11][12] - The company is cautious about macroeconomic pressures but expects a return to historical growth rates in the short term [12][14] - Management acknowledges the impact of weather events but views them as neutral overall for sales performance [7][34] Other Important Information - Inventory per store finished the quarter at $781,000, up 3% from the previous year [19] - The company repurchased 499,000 shares at an average price of $1,084 during Q3, totaling $541 million [28] Q&A Session Summary Question: Supply chain and market expansion in the Northeast - Management expressed excitement about the new Mid Atlantic distribution center and its potential to open up opportunities in the Northeast market [30][31] Question: Impact of hurricanes on sales - Management indicated that while there were disruptions due to hurricanes, the overall impact on comparable store sales was minimal [33][34] Question: Short-lived headwinds and market confidence - Management reiterated confidence in returning to normal industry growth post-election and inflation moderation [38][39] Question: Preparing for potential tariffs - Management is confident in their ability to pass through increased costs from tariffs, citing past experiences [48][49][62] Question: Deferred maintenance dynamics - Management noted that while there has been some softness in discretionary spending, maintenance categories remain strong [52][54]

O’Reilly Automotive, Inc. (ORLY) reported third-quarter 2024 adjusted earnings per share (EPS) of $11.41, which missed the Zacks Consensus Estimate of $11.53. However, the bottom line increased from $10.72 reported in the prior-year quarter. The automotive parts retailer registered quarterly revenues of $4.36 billion, missing the Zacks Consensus Estimate of $4.43 billion. The top line, however, increased 3.8% year over year.Stay up-to-date with the quarterly releases: See Zacks Earnings Calendar.During the ...

For the quarter ended September 2024, O'Reilly Automotive (ORLY) reported revenue of $4.36 billion, up 3.8% over the same period last year. EPS came in at $11.41, compared to $10.72 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $4.43 billion, representing a surprise of -1.38%. The company delivered an EPS surprise of -1.04%, with the consensus EPS estimate being $11.53.While investors scrutinize revenue and earnings changes year-over-year and how they compare with ...

Company Performance - O'Reilly Automotive reported quarterly earnings of $11.41 per share, missing the Zacks Consensus Estimate of $11.53 per share, but showing an increase from $10.72 per share a year ago, representing an earnings surprise of -1.04% [1] - The company posted revenues of $4.36 billion for the quarter ended September 2024, which was below the Zacks Consensus Estimate by 1.38%, and an increase from $4.2 billion year-over-year [1] - Over the last four quarters, O'Reilly Automotive has surpassed consensus EPS estimates two times and topped consensus revenue estimates just once [1] Stock Performance - O'Reilly Automotive shares have increased approximately 26.9% since the beginning of the year, outperforming the S&P 500's gain of 22.7% [2] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $9.81 on revenues of $4.06 billion, and for the current fiscal year, it is $41.05 on revenues of $16.73 billion [4] - The estimate revisions trend for O'Reilly Automotive is currently unfavorable, resulting in a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [4] Industry Context - The Automotive - Retail and Wholesale - Parts industry is currently ranked in the bottom 18% of over 250 Zacks industries, suggesting that the outlook for the industry can significantly impact stock performance [5] - Another company in the same industry, Hagerty, Inc. (HGTY), is expected to report quarterly earnings of $0.08 per share, reflecting a year-over-year change of +60%, with revenues projected at $318.07 million, up 15.4% from the previous year [5]

[Executive Summary & Management Commentary](index=1&type=section&id=Executive%20Summary%20%26%20Management%20Commentary) [Third Quarter 2024 Overview](index=1&type=section&id=Third%20Quarter%202024%20Overview) O'Reilly Automotive, Inc. reported record Q3 2024 revenue and earnings, with comparable store sales up 1.5% and strong professional business growth - Comparable store sales increased **1.5% in Q3 2024**, despite consumer pressures and soft demand in both professional and DIY segments. This builds on 8.7% and 7.6% increases in Q3 of the last two years[2](index=2&type=chunk) - The professional business achieved another strong quarter of sales growth, indicating continued market share gains[2](index=2&type=chunk) | Metric | Q3 2024 (Millions) | Q3 2023 (Millions) | Change (%) | | :-------------------------- | :----------------- | :----------------- | :--------- | | Sales | $4,364 | $4,203 | 4% | | Gross Profit | $2,251 (51.6% of sales) | $2,160 (51.4% of sales) | 4% | | SG&A Expenses | $1,354 (31.0% of sales) | $1,263 (30.1% of sales) | 7% | | Operating Income | $897 (20.5% of sales) | $897 (21.3% of sales) | 0% | | Net Income | $665 (15.2% of sales) | $650 (15.5% of sales) | 2% | | Diluted EPS | $11.41 | $10.72 | 6% | | Shares Outstanding (Diluted)| 58 million | 61 million | -5% | [Year-to-Date 2024 Overview](index=1&type=section&id=Year-to-Date%202024%20Overview) For the first nine months of 2024, O'Reilly Automotive, Inc. achieved 5% sales growth and 7% diluted EPS growth, tightening full-year comparable store sales guidance - Full-year comparable store sales guidance was tightened from **2.0%-4.0% to 2.0%-3.0%** to reflect year-to-date performance and future expectations[4](index=4&type=chunk) | Metric | YTD 2024 (Millions) | YTD 2023 (Millions) | Change (%) | | :-------------------------- | :------------------ | :------------------ | :--------- | | Sales | $12,610 | $11,980 | 5% | | Gross Profit | $6,450 (51.2% of sales) | $6,140 (51.2% of sales) | 5% | | SG&A Expenses | $3,940 (31.2% of sales) | $3,670 (30.6% of sales) | 7% | | Operating Income | $2,510 (19.9% of sales) | $2,470 (20.6% of sales) | 2% | | Net Income | $1,840 (14.6% of sales) | $1,790 (15.0% of sales) | 2% | | Diluted EPS | $31.14 | $29.20 | 7% | | Shares Outstanding (Diluted)| 59 million | 61 million | -3% | [Comparable Store Sales Performance](index=2&type=section&id=Comparable%20Store%20Sales%20Performance) Comparable store sales for O'Reilly Automotive, Inc. grew **1.5% in Q3 2024** and **2.4% year-to-date**, building on strong prior-year performance - Comparable store sales definition includes U.S. stores open at least one year, online ship-to-home, and pick-up-in-store orders, excluding specialty machinery, sales to independent parts stores, Team Members, and Leap Day sales[6](index=6&type=chunk) | Period | Comparable Store Sales Growth | | :---------- | :---------------------------- | | Q3 2024 | 1.5% (on top of 8.7% in Q3 2023) | | YTD 2024 | 2.4% (on top of 9.4% in YTD 2023) | [Share Repurchase Program](index=2&type=section&id=Share%20Repurchase%20Program) The Company invested **$541 million in Q3 2024** and **$1.60 billion year-to-date** in share repurchases, with **$898 million remaining** under authorization | Period | Shares Repurchased (Millions) | Average Price Per Share | Total Investment (Millions) | | :-------------------------------------- | :---------------------------- | :---------------------- | :-------------------------- | | Q3 2024 | 0.5 | $1,084.28 | $541 | | YTD 2024 | 1.5 | $1,038.32 | $1,600 | | Subsequent to Q3 2024 (through release) | 0.1 | $1,170.55 | $70 | | Program Inception (Jan 2011) to Date | 95.7 | $259.72 | $24,850 | - Excise tax on shares repurchased for the nine months ended September 30, 2024, was **$16.0 million**[7](index=7&type=chunk) - Approximately **$898 million** remained under the current share repurchase authorization as of the release date[7](index=7&type=chunk) [Updated Full-Year 2024 Guidance](index=3&type=section&id=Updated%20Full-Year%202024%20Guidance) [Financial Guidance](index=3&type=section&id=Financial%20Guidance) O'Reilly Automotive, Inc. updated its full-year 2024 financial guidance, tightening comparable store sales and providing ranges for key financial metrics | Metric | Full-Year 2024 Guidance | | :------------------------------------ | :---------------------- | | Net, new store openings | 190 to 200 | | Comparable store sales | 2.0% to 3.0% | | Total revenue | $16.6 billion to $16.8 billion | | Gross profit as a percentage of sales | 51.0% to 51.5% | | Operating income as a percentage of sales | 19.4% to 19.9% | | Effective income tax rate | 21.8% | | Diluted earnings per share | $40.60 to $41.10 | | Net cash provided by operating activities | $2.7 billion to $3.1 billion | | Capital expenditures | $900 million to $1.0 billion | | Free cash flow | $1.8 billion to $2.1 billion | [Free Cash Flow Reconciliation](index=3&type=section&id=Free%20Cash%20Flow%20Reconciliation) The company provided a reconciliation of its non-GAAP free cash flow guidance to the most directly comparable GAAP measure, net cash provided by operating activities | (in millions) | For the Year Ending December 31, 2024 | | :------------------------------------------------ | :------------------------------------ | | Net cash provided by operating activities | $2,730 to $3,140 | | Less: Capital expenditures | 900 to 1,000 | | Less: Excess tax benefit from share-based compensation payments | 30 to 40 | | Free cash flow | $1,800 to $2,100 | [Company Information & Disclosures](index=3&type=section&id=Company%20Information%20%26%20Disclosures) [About O'Reilly Automotive, Inc.](index=3&type=section&id=About%20O%27Reilly%20Automotive%2C%20Inc.) O'Reilly Automotive, Inc. is a leading automotive aftermarket retailer, serving DIY and professional markets with **6,291 stores** across North America - O'Reilly Automotive, Inc. is a leading specialty retailer in the automotive aftermarket industry, serving both DIY and professional markets[12](index=12&type=chunk) - As of September 30, 2024, the Company operated **6,291 stores** across 48 U.S. states, Puerto Rico, Mexico, and Canada[12](index=12&type=chunk) [Non-GAAP Information](index=3&type=section&id=Non-GAAP%20Information) The release presents non-GAAP financial measures, including adjusted debt to EBITDAR and free cash flow, as supplemental information for investors - Non-GAAP financial measures, including adjusted debt to EBITDAR and free cash flow, are presented as supplemental information, not as substitutes for GAAP measures[10](index=10&type=chunk) - The Company believes these non-GAAP measures are indicative of its core operations and provide meaningful supplemental information[10](index=10&type=chunk) [Earnings Conference Call Information](index=3&type=section&id=Earnings%20Conference%20Call%20Information) O'Reilly Automotive, Inc. will host a conference call on **October 24, 2024**, to discuss results and future expectations, with live and replay access details provided - A conference call to discuss results and future expectations will be held on Thursday, **October 24, 2024, at 10:00 a.m. Central Time**[11](index=11&type=chunk) - Investors can listen live on the Company's website (www.OReillyAuto.com) or join via dial-in (888) 506-0062, conference ID 560004. A replay will be available until October 23, 2025[11](index=11&type=chunk) [Forward-Looking Statements](index=3&type=section&id=Forward-Looking%20Statements) The document contains forward-looking statements based on estimates and assumptions, subject to various risks and uncertainties that could cause actual results to differ materially - Statements discussing expected growth, store development, business strategies, future revenues, and performance are forward-looking and subject to risks and uncertainties[13](index=13&type=chunk) - Key risks include the economy, inflation, consumer debt, product demand, competition, supply chain disruptions, and governmental regulations[13](index=13&type=chunk) - The Company claims safe-harbor protection and undertakes no obligation to publicly update these statements, except as required by law[13](index=13&type=chunk) [Condensed Consolidated Financial Statements](index=4&type=section&id=Condensed%20Consolidated%20Financial%20Statements) [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) The condensed consolidated balance sheets provide a snapshot of the Company's financial position as of September 30, 2024, compared to prior periods, detailing assets, liabilities, and shareholders' equity | (In thousands) | Sep 30, 2024 | Sep 30, 2023 | Dec 31, 2023 | | :---------------------------------- | :----------- | :----------- | :----------- | | **Assets** | | | | | Total current assets | $5,698,287 | $5,377,712 | $5,558,302 | | Net property and equipment | $5,436,382 | $4,888,177 | $5,036,980 | | Operating lease, right-of-use assets| $2,269,929 | $2,213,884 | $2,200,554 | | Goodwill | $997,226 | $895,399 | $897,696 | | Total assets | $14,577,522 | $13,551,838 | $13,872,995 | | **Liabilities & Equity** | | | | | Total current liabilities | $8,185,165 | $7,831,082 | $7,661,353 | | Long-term debt | $5,359,810 | $5,102,350 | $5,570,125 | | Operating lease liabilities, less current portion | $1,938,162 | $1,895,991 | $1,881,344 | | Total shareholders' deficit | $(1,439,064) | $(1,760,469) | $(1,739,278) | [Condensed Consolidated Statements of Income](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) The condensed consolidated statements of income present the Company's revenues, expenses, and net income for Q3 and YTD 2024, compared to the same periods in 2023 | (In thousands, except per share data) | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 | | :------------------------------------ | :----------- | :----------- | :----------- | :----------- | | Sales | $4,364,437 | $4,203,380 | $12,612,878 | $11,980,235 | | Cost of goods sold | $2,113,212 | $2,042,917 | $6,159,421 | $5,842,861 | | Gross profit | $2,251,225 | $2,160,463 | $6,453,457 | $6,137,374 | | Selling, general and administrative expenses | $1,354,497 | $1,263,241 | $3,940,950 | $3,669,734 | | Operating income | $896,728 | $897,222 | $2,512,507 | $2,467,640 | | Income before income taxes | $847,921 | $846,667 | $2,359,867 | $2,333,219 | | Provision for income taxes | $182,457 | $196,840 | $524,317 | $539,142 | | Net income | $665,464 | $649,827 | $1,835,550 | $1,794,077 | | Diluted earnings per share | $11.41 | $10.72 | $31.14 | $29.20 | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) The condensed consolidated statements of cash flows detail cash generated from operating, investing, and financing activities for YTD 2024 and 2023, showing a net decrease in cash for 2024 | (In thousands) | YTD 2024 | YTD 2023 | | :-------------------------------------------- | :----------- | :----------- | | Net cash provided by operating activities | $2,425,089 | $2,517,655 | | Net cash used in investing activities | $(883,608) | $(749,773) | | Net cash used in financing activities | $(1,704,093) | $(1,794,694) | | Net decrease in cash and cash equivalents | $(163,519) | $(25,919) | | Cash and cash equivalents at end of the period| $115,613 | $82,664 | - Significant financing activities in YTD 2024 included proceeds from long-term debt (**$498.9 million**) and repurchases of common stock (**$1.60 billion**)[18](index=18&type=chunk) [Supplemental Financial Data](index=8&type=section&id=Supplemental%20Financial%20Data) [Adjusted Debt to EBITDAR](index=8&type=section&id=Adjusted%20Debt%20to%20EBITDAR) The Company's adjusted debt to EBITDAR ratio increased slightly to **1.96** for the twelve months ended September 30, 2024, from **1.93** in the prior year | (In thousands, except ratio) | For the Twelve Months Ended Sep 30, 2024 | For the Twelve Months Ended Sep 30, 2023 | | :--------------------------- | :--------------------------------------- | :--------------------------------------- | | GAAP debt | $5,359,810 | $5,102,350 | | Adjusted debt | $8,182,230 | $7,749,660 | | EBITDAR | $4,177,822 | $4,011,266 | | Adjusted debt to EBITDAR | 1.96 | 1.93 | [Selected Balance Sheet Ratios](index=8&type=section&id=Selected%20Balance%20Sheet%20Ratios) Key balance sheet ratios for September 30, 2024, show stable inventory turnover, increased average inventory per store, and decreased accounts payable to inventory ratio | Metric | Sep 30, 2024 | Sep 30, 2023 | | :---------------------------- | :----------- | :----------- | | Inventory turnover | 1.7 | 1.7 | | Average inventory per store (in thousands) | $781 | $758 | | Accounts payable to inventory | 129.4% | 133.9% | [Revenue Disaggregation](index=9&type=section&id=Revenue%20Disaggregation) Revenue disaggregation details the Company's sales breakdown between DIY customers, professional service providers, and other sales for Q3 and YTD periods | (in thousands) | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 | | :------------------------------------------------- | :----------- | :----------- | :----------- | :----------- | | Sales to do-it-yourself customers | $2,215,640 | $2,206,511 | $6,366,670 | $6,254,980 | | Sales to professional service provider customers | $2,032,376 | $1,914,884 | $5,901,820 | $5,480,212 | | Other sales, sales adjustments, and Vast Auto stores | $116,421 | $81,985 | $344,388 | $245,043 | | Total sales | $4,364,437 | $4,203,380 | $12,612,878 | $11,980,235 | [Store and Team Member Information](index=9&type=section&id=Store%20and%20Team%20Member%20Information) The Company's store count increased across all operations to **6,291 stores** as of September 30, 2024, alongside growth in employment and square footage | Store Count (as of Sep 30) | 2024 | 2023 | | :------------------------- | :---- | :---- | | Ending domestic store count| 6,187 | 6,063 | | Ending Mexico store count | 78 | 48 | | Ending Canada store count | 26 | — | | Total ending store count | 6,291 | 6,111 | | Metric (as of Sep 30) | 2024 | 2023 | | :-------------------------------- | :---------- | :---------- | | Total employment | 92,709 | 90,910 | | Square footage (in thousands) | 47,949 | 46,258 | | Sales per weighted-average square foot (Q3) | $89.17 | $89.99 | | Sales per weighted-average store (in thousands) (Q3) | $689 | $683 |