Board approves 15-for-1 stock split, subject to shareholder approval of share authorization increaseSplit is aimed at helping team members take advantage of employee stock purchase benefits SPRINGFIELD, Mo., March 13, 2025 (GLOBE NEWSWIRE) -- O’Reilly Automotive, Inc. (the “Company” or “O’Reilly”) (Nasdaq: ORLY), a leading retailer in the automotive aftermarket industry, today announced that its Board of Directors (the “Board”) approved a 15-for-1 split of its common stock, to be effected in the form of a o ...

It has been about a month since the last earnings report for O'Reilly Automotive (ORLY) . Shares have added about 0% in that time frame, outperforming the S&P 500.Will the recent 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 the most recent earnings report in order to get a better handle on the important drivers. O'Reilly Q3 Earnings Miss ExpectationsO’Re ...

Store Operations - As of December 31, 2024, the company operated 6,265 stores in the U.S. and Puerto Rico, 87 stores in Mexico, and 26 stores in Canada[167]. - The company opened 198 net new stores during the year ended December 31, 2024, and 186 in 2023, with an anticipated growth of 200 to 210 net new store openings in 2025[184]. - The company acquired Groupe Del Vasto in January 2024, adding 23 stores to its count[188]. Vehicle Statistics - The total number of registered vehicles in the U.S. increased by 14.2% from 2013 to 2023, reaching 284 million vehicles by the end of 2023[173]. - The average age of the U.S. vehicle population increased by 10.6%, from 11.3 years in 2013 to 12.5 years in 2023[173]. - The seasonally adjusted annual rate of light vehicle sales in the U.S. for the year ended December 31, 2024, was approximately 16.8 million vehicles[173]. - The number of total miles driven in the U.S. increased by 0.9% in 2022, 2.1% in 2023, and 1.0% year-to-date through November 2024[172]. Financial Performance - Sales for the year ended December 31, 2024, increased by $896 million, or 6%, to $16.71 billion from $15.81 billion for the same period in 2023[184]. - Comparable store sales for stores open at least one year increased by 2.9% for the year ended December 31, 2024, compared to a 7.9% increase in 2023[184]. - Gross profit for the year ended December 31, 2024, was $8,554,489, compared to $8,104,803 in 2023[184]. - Operating income for the year ended December 31, 2024, was $3,251,157, an increase from $3,186,376 in 2023[184]. - Net income for the year ended December 31, 2024, was $2,386,680, compared to $2,346,581 in 2023[184]. - Earnings per share (basic) for the year ended December 31, 2024, was $40.91, up from $38.80 in 2023[184]. - Gross profit for the year ended December 31, 2024, increased 6% to $8.55 billion, representing 51.2% of sales, compared to $8.10 billion or 51.3% of sales in 2023[188]. - Operating income increased 2% to $3.25 billion, or 19.5% of sales, compared to $3.19 billion or 20.2% of sales in 2023[190]. - Net income for the year ended December 31, 2024, increased to $2.39 billion, or 14.3% of sales, from $2.35 billion or 14.8% of sales in 2023[193]. - Diluted earnings per share increased 6% to $40.66 on 59 million shares, up from $38.47 on 61 million shares in 2023[194]. Cash Flow and Debt - The company reported a free cash flow of $1,987,808 for the year ended December 31, 2024, compared to $1,987,720 in 2023[184]. - Free cash flow for the year ended December 31, 2024, was $1,99 billion, compared to $1.99 billion in 2023[206]. - Total cash provided by operating activities was $3.05 billion in 2024, slightly up from $3.03 billion in 2023[206]. - Total assets as of December 31, 2024, were $14,893,741, compared to $13,872,995 in 2023[184]. - Total debt as of December 31, 2024, was $5,520,932, a slight decrease from $5,570,125 in 2023[184]. - The company had outstanding fixed rate debt of $5.4 billion as of December 31, 2024, compared to $4.9 billion in 2023[230]. - The fair value of fixed rate debt was estimated at $5.2 billion as of December 31, 2024, up from $4.7 billion in 2023[230]. - The company had outstanding borrowings under its commercial paper program amounting to $200 million at a weighted-average variable interest rate of 4.750% as of December 31, 2024[229]. Cost Management and Economic Factors - The company has successfully managed inflationary cost pressures by leveraging supplier incentive programs and economies of scale, allowing it to pass on cost increases through higher selling prices[175]. - Macroeconomic factors such as inflation, fuel costs, and unemployment trends may impact consumer disposable income and, consequently, the company's business[170]. - Selling, general and administrative expenses (SG&A) rose 8% to $5.30 billion, accounting for 31.7% of sales, up from $4.92 billion or 31.1% of sales in 2023[189]. - Total other expense increased 13% to $206 million, or 1.2% of sales, due to higher interest expenses[191]. Customer Engagement and Product Strategy - The company aims to gain market share in existing markets and expand into new markets by focusing on its dual market strategy and core values of hard work and customer service[176]. - The company offers a wide range of products differentiated by quality and price, with the highest sales and gross profit typically coming from the "best" quality category[168]. - The company has ongoing initiatives to educate customers on the benefits of vehicle maintenance and encourage them to purchase higher-quality products[168]. Currency Exposure - The net asset exposure in Mexican subsidiaries was $343.6 million as of December 31, 2024, with an 18.5% depreciation of the Mexican peso against the U.S. dollar from the previous year[233]. - The net asset exposure in Canadian subsidiaries was $162.8 million as of December 31, 2024, with a 7.9% depreciation of the Canadian dollar against the U.S. dollar from the previous year[234]. Insurance and Reserves - The self-insurance reserve estimate increased by $54 million from 2023 to 2024, primarily due to inflation in claim development costs[226]. Financial Ratios - The consolidated fixed charge coverage ratio was 6.11 times for the year ended December 31, 2024, compared to 6.42 times for 2023[217]. - The consolidated leverage ratio decreased to 1.89 times as of December 31, 2024, from 1.93 times in 2023[217].

The objective of investing is to raise one's spending power over the long haul. Unsurprisingly, some stocks have done a better job than others at doing precisely that.There's one retail stock that has skyrocketed 53,680% since its initial public offering in April 1993. This means a $1,860 investment made back then would be worth a cool $1 million today. Forward-thinking investors who missed the boat are wondering what the future will hold.Can this stock continue to climb in the years ahead?O'Reilly's boring ...

Group 1 - The core viewpoint is that O'Reilly Automotive (NASDAQ: ORLY) is considered expensive, maintaining a hold rating due to high valuation [1] - The investment strategy focuses on long-term investments while also incorporating short-term shorts to identify alpha opportunities [1] - The analysis emphasizes a bottom-up approach, assessing the fundamental strengths and weaknesses of individual companies [1] Group 2 - The investment duration is medium to long-term, aiming to identify companies with solid fundamentals, sustainable competitive advantages, and growth potential [1]

I am an avid investor with a major focus on small cap companies with experience in investing in US, Canadian, and European markets. My investment philosophy to generating great returns on the stock market revolves around identifying mispriced securities by understanding the drivers behind a company's financials, and ultimately, most often revealed by a DCF model valuation. This methodology doesn't limit an investor into rigid traditional value, dividend, or growth investing, but rather accounts for all of a ...

Financial Data and Key Metrics Changes - Comparable store sales increased by 2.9% for the full year 2024, with a diluted earnings per share (EPS) increase of 5.7% [8][75] - Fourth-quarter comparable store sales grew by 4.4%, driven by both professional and DIY segments [11][78] - The company faced a headwind of approximately 5% to fourth-quarter EPS growth due to a $35 million charge related to auto claims self-insurance liabilities [9][76] Business Line Data and Key Metrics Changes - The professional business delivered mid-single-digit comparable sales growth, while DIY grew just over 3%, marking the best quarterly result for DIY in 2024 [11][80] - Maintenance categories saw strong demand, while discretionary categories like tools and accessories experienced continued softness [12][81] - Average ticket values contributed positively to comparable sales growth, with same SKU inflation of just under 1% [17][85] Market Data and Key Metrics Changes - The automotive aftermarket faced broad-based pressure on consumers throughout 2024, impacting overall demand [12][80] - The company noted that the U.S. car park is growing, characterized by an increased average vehicle age, supporting durable demand in the automotive aftermarket [88][89] Company Strategy and Development Direction - The company plans to open 200 to 210 net new stores in 2025, reflecting confidence in balancing organic growth with greenfield growth [29][96] - Capital expenditures for 2024 were just over $1 billion, with guidance for 2025 set at $1.2 billion, focusing on store and distribution expansion [29][95] - The company aims to maintain a mix of 60% owned versus 40% leased stores in its new store openings [100][101] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about long-term fundamentals in the automotive aftermarket, despite caution regarding potential short-term economic shocks [90][91] - The company expects comparable store sales growth in 2025 to be in the range of 2% to 4% [87][92] - Management highlighted the importance of exceptional customer service and effective execution of the business model to drive results [91][92] Other Important Information - The fourth-quarter gross margin was 51.3%, consistent with the previous year, while the full-year gross margin was 51.2%, down six basis points from the prior year [37][105] - Free cash flow for 2024 was $2 billion, unchanged from 2023, with expectations for 2025 to be in the range of $1.6 billion to $1.9 billion [63][64] - The company repurchased 1.9 million shares in 2024 at an average price of $1,072, totaling an investment of $2.1 billion [66] Q&A Session Summary Question: What is the outlook for comparable store sales growth in 2025? - The company has established a guidance range for comparable store sales growth in 2025 at 2% to 4% [87][92] Question: How does the company plan to manage expenses in 2025? - The company anticipates prudent actions to manage expenses effectively in response to market conditions, while also investing in key capabilities [56][92] Question: What impact do tariffs have on the company's outlook? - The company has not incorporated any impact from potential tariff changes into its sales assumptions, as it remains too early to project the effects [93][94]

Growth investors focus on stocks that are seeing above-average financial growth, as this feature helps these securities garner the market's attention and deliver solid returns. But finding a great growth stock is not easy at all.In addition to volatility, these stocks carry above-average risk by their very nature. Also, one could end up losing from a stock whose growth story is actually over or nearing its end.However, the Zacks Growth Style Score (part of the Zacks Style Scores system), which looks beyond ...

O’Reilly Automotive, Inc. (ORLY) reported fourth-quarter 2024 adjusted earnings per share (EPS) of $9.96, which beat the Zacks Consensus Estimate of $9.71. The bottom line also increased from $9.26 reported in the prior-year quarter. The automotive parts retailer registered quarterly revenues of $4.10 billion, surpassing the Zacks Consensus Estimate of $4.03 billion. The top line also increased 7% year over year.See the Zacks Earnings Calendar to stay ahead of market-making news.During the quarter, comparab ...

For the quarter ended December 2024, O'Reilly Automotive (ORLY) reported revenue of $4.1 billion, up 6.9% over the same period last year. EPS came in at $9.96, compared to $9.26 in the year-ago quarter.The reported revenue represents a surprise of +1.62% over the Zacks Consensus Estimate of $4.03 billion. With the consensus EPS estimate being $9.71, the EPS surprise was +2.57%.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Str ...