分组1 - O'Reilly Automotive reported quarterly earnings of $0.71 per share, missing the Zacks Consensus Estimate of $0.72 per share, but showing an increase from $0.66 per share a year ago, resulting in an earnings surprise of -1.28% [1] - The company posted revenues of $4.41 billion for the quarter ended December 2025, surpassing the Zacks Consensus Estimate by 0.44%, and an increase from $4.1 billion year-over-year [2] - O'Reilly Automotive shares have increased approximately 6.5% since the beginning of the year, outperforming the S&P 500's gain of 1.1% [3] 分组2 - The current consensus EPS estimate for the coming quarter is $0.72 on revenues of $4.44 billion, and for the current fiscal year, it is $3.30 on revenues of $18.98 billion [7] - The Zacks Industry Rank for Automotive - Retail and Wholesale - Parts is currently in the bottom 30% of over 250 Zacks industries, indicating potential challenges for stock performance [8] - Another company in the same industry, Genuine Parts, is expected to report quarterly earnings of $1.79 per share, reflecting a year-over-year change of +11.2%, with revenues projected at $6.04 billion, up 4.6% from the previous year [9][10]

Financial Performance - Fourth quarter sales increased by $319 million, or 8%, to $4.41 billion from $4.10 billion year-over-year[3] - Fourth quarter gross profit rose 9% to $2.29 billion, representing 51.8% of sales, compared to 51.3% of sales in the same period last year[3] - Fourth quarter diluted earnings per share increased 13% to $0.71, while full-year diluted earnings per share rose 10% to $2.97[5][7] - Full-year sales increased by $1.07 billion, or 6%, to $17.78 billion from $16.71 billion year-over-year[6] - Full-year comparable store sales growth was 4.7%, with fourth quarter growth at 5.6%[5][8] - Net income for the year ended December 31, 2025, was $2.54 billion, compared to $2.39 billion in 2024, reflecting a growth of 6.4%[21] - Sales for the year ended December 31, 2025, reached $17.78 billion, an increase of 6.4% from $16.71 billion in 2024[21] - Gross profit for the year ended December 31, 2025, was $9.17 billion, up from $8.55 billion in 2024, indicating a growth of 7.3%[21] - Operating income for the year ended December 31, 2025, was $3.46 billion, compared to $3.25 billion in 2024, marking an increase of 6.5%[21] - Earnings per share (basic) for the year ended December 31, 2025, was $2.98, up from $2.73 in 2024, an increase of 9.2%[21] Cash Flow and Debt - Net cash provided by operating activities for 2025 was $2.8 billion[5] - Net cash provided by operating activities for the year ended December 31, 2025, was $2.76 billion, compared to $3.05 billion in 2024, a decrease of 9.5%[23] - Free cash flow for the year ended December 31, 2025, was $1,563,250 thousand, down from $1,987,808 thousand in 2024, representing a decrease of 21.3%[25] - Long-term debt increased to $6.02 billion in 2025 from $5.52 billion in 2024, reflecting a growth of 9.0%[19] - Adjusted debt increased to $9,137,784 thousand in 2025 from $8,392,484 thousand in 2024, resulting in an adjusted debt to EBITDAR ratio of 2.03, up from 1.99[25] Store Operations - The company opened 207 net new stores in 2025, including a new distribution center in Virginia[6] - The company opened 182 new stores in 2025, increasing the total domestic store count to 6,447, up from 6,265 in 2024[26] - Average inventory per store increased to $870 thousand in 2025 from $799 thousand in 2024, indicating a rise of 8.9%[25] - Total employment remained stable at 93,072 in 2025, compared to 93,176 in 2024[26] Inventory and Sales Metrics - Sales to do-it-yourself customers rose to $8,765,647 thousand in 2025, compared to $8,473,041 thousand in 2024, reflecting a growth of 3.4%[26] - Sales per weighted-average square foot increased to $345.73 in 2025 from $342.32 in 2024, reflecting a growth of 1.4%[26] - The company’s inventory turnover ratio decreased to 1.6 in 2025 from 1.7 in 2024[25] Guidance - Full-year 2026 guidance includes total revenue of $18.7 billion to $19.0 billion and diluted earnings per share of $3.10 to $3.20[10] Assets and Liabilities - Total assets increased to $16.54 billion as of December 31, 2025, up from $14.89 billion in 2024, representing an increase of 11.0%[19] - Total current liabilities rose to $8.78 billion in 2025, compared to $8.28 billion in 2024, an increase of 6.0%[19] - Cash and cash equivalents at the end of the period increased to $193.79 million from $130.25 million, a rise of 48.6%[23] Expenses - SG&A expenses for the fourth quarter increased 7% to $1.46 billion, representing 33.0% of sales[3] - EBITDAR for 2025 was reported at $4,511,937 thousand, an increase from $4,210,964 thousand in 2024, marking a growth of 7.2%[25]

Core Viewpoint - O'Reilly Automotive, Inc. reported record revenue and earnings for the fourth quarter and full year ended December 31, 2025, marking 33 consecutive years of comparable store sales growth since going public in 1993 [1]. Fourth Quarter Financial Results - Fourth quarter sales increased by $319 million, or 8%, to $4.41 billion compared to $4.10 billion in the same period last year [2]. - Gross profit for the fourth quarter rose by 9% to $2.29 billion, representing 51.8% of sales, up from 51.3% a year ago [2]. - Selling, general and administrative expenses (SG&A) increased by 7% to $1.46 billion, accounting for 33.0% of sales, compared to 33.3% last year [2]. - Operating income for the fourth quarter increased by 12% to $829 million, or 18.8% of sales, compared to 18.0% last year [2]. - Net income for the fourth quarter rose by $54 million, or 10%, to $605 million, representing 13.7% of sales, up from 13.5% a year ago [3]. - Diluted earnings per share for the fourth quarter increased by 13% to $0.71 on 848 million shares, compared to $0.63 on 870 million shares last year [3]. Full-Year Financial Results - Full-year sales increased by $1.07 billion, or 6%, to $17.78 billion from $16.71 billion in the previous year [4]. - Gross profit for the full year rose by 7% to $9.17 billion, representing 51.6% of sales, up from 51.2% last year [4]. - SG&A for the full year increased by 8% to $5.71 billion, accounting for 32.1% of sales, compared to 31.7% last year [4]. - Net income for the full year increased by $152 million, or 6%, to $2.54 billion, representing 14.3% of sales, consistent with the previous year [7]. - Diluted earnings per share for the full year increased by 10% to $2.97 on 856 million shares, compared to $2.71 on 881 million shares last year [7]. Comparable Store Sales - Comparable store sales grew by 5.6% in the fourth quarter, following a 4.4% increase in the same period last year [8]. - Full-year comparable store sales increased by 4.7%, compared to a 2.9% increase in the previous year [8]. Share Repurchase Program - In the fourth quarter, the company repurchased 5.2 million shares at an average price of $96.69, totaling $500 million [9]. - For the full year, 22.7 million shares were repurchased at an average price of $92.26, totaling $2.10 billion [9]. 2026 Guidance - The company anticipates net new store openings of 225 to 235 and comparable store sales growth of 3.0% to 5.0% for the year ending December 31, 2026 [10]. - Total revenue is projected to be between $18.7 billion and $19.0 billion, with diluted earnings per share expected to be between $3.10 and $3.20 [10].

U.S. stock futures are exhibiting a mixed performance this Wednesday, February 4, 2026, as investors digest a fresh wave of corporate earnings and continue to scrutinize the valuation of artificial intelligence (AI)-related stocks. This premarket activity follows a notable pullback in major indexes during Tuesday's trading session, largely driven by a rotation out of richly valued technology shares.Premarket Trading and Futures MovementsAs the market approaches the opening bell, S&P 500 futures (ESH26) are ...

Wall Street analysts forecast that O'Reilly Automotive (ORLY) will report quarterly earnings of $0.72 per share in its upcoming release, pointing to a year-over-year increase of 9.1%. It is anticipated that revenues will amount to $4.4 billion, exhibiting an increase of 7.3% compared to the year-ago quarter.The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This reflects how the analysts covering the stock have collectively reevaluated their initial estimates during thi ...

Group 1 - The macroeconomic environment in the previous year was characterized by significant changes in trade policies and a strong focus on artificial intelligence investments [1] - O'Reilly Automotive has demonstrated a strong track record, with positive share price returns in all but one year from 2016 to 2025, including a 15% increase last year [3][4] - The company has achieved 32 consecutive years of same-store sales (SSS) growth, indicating robust demand for its services [4] Group 2 - O'Reilly's earnings per share (EPS) is projected to grow by 11.4% in 2026, following an annualized growth rate of 17.9% from 2019 to 2024 [5] - The current price-to-earnings (P/E) ratio for O'Reilly is 32.5, which is 25% higher than its trailing five-year average, indicating a valuation that is difficult to predict [6] - O'Reilly is recognized as a leader in the aftermarket auto parts industry, with ongoing expansion through new store openings and a strong focus on share repurchases [7]

Core Insights - O'Reilly Automotive, Inc. (ORLY) is recognized as a strong long-term compounder and is currently undergoing significant expansion, which lays the groundwork for international growth [1] Company Overview - O'Reilly Automotive has demonstrated solid performance over the years, indicating its potential for continued growth and profitability [1] Expansion Plans - The company is in the midst of a major expansion initiative, which is expected to enhance its market presence and facilitate international operations [1]

Core Viewpoint - O'Reilly Automotive, Inc. (ORLY) is recognized as a strong long-term compounder and is currently undergoing significant expansion, laying the groundwork for international growth [1] Group 1: Company Overview - O'Reilly Automotive has demonstrated solid performance over the long term, indicating its capability as a reliable investment [1] - The company is in the midst of a substantial expansion phase, which is expected to enhance its market presence internationally [1] Group 2: Analyst Background - The analyst has over a decade of experience researching various industries, including commodities and technology, which informs their insights on investment opportunities [1] - The analyst has transitioned from writing a blog to creating a value investing-focused YouTube channel, where extensive research on numerous companies has been conducted [1]

Core Viewpoint - The Zacks Automotive - Retail and Wholesale - Parts industry is experiencing a positive outlook driven by trends such as an aging vehicle fleet, increasing vehicle technology complexity, and advancements in digitization that enhance customer experience [1][4][6]. Industry Overview - The industry encompasses retailing, distribution, and installation of vehicle parts, with options for consumers to either repair vehicles themselves (DIY) or seek professional assistance (DIFM) [3]. - The competitive landscape is evolving due to changing customer expectations and technological innovations [3]. Factors at Play - **Aging Vehicles Fuel Auto Parts Demand**: The average age of vehicles on U.S. roads has reached 12.8 years, leading to increased demand for repairs and maintenance as consumers prefer to maintain existing vehicles rather than purchase new ones [4]. - **Technology Changing Repair Dynamics**: Advanced vehicle technologies are making repairs more complex, resulting in a shift from DIY repairs to reliance on professional mechanics and service centers [5]. - **Digitization Enhancing Customer Experience**: Companies are investing in digital transformation to improve customer engagement through online platforms and transparent pricing tools, which are becoming essential for competitiveness [6]. - **Softening Auto Sales to Support Aftermarket Reliance**: Economic pressures are expected to soften new vehicle sales, prompting consumers to repair existing vehicles, thereby supporting demand for auto parts and services [7]. Industry Ranking and Performance - The Zacks Auto Retail & Wholesale Parts industry holds a favorable Zacks Industry Rank of 62, placing it in the top 25% of approximately 245 Zacks industries, indicating strong near-term prospects [8][9]. - Despite this, the industry has underperformed compared to the Auto, Tires, and Truck sector and the S&P 500 over the past year, with a growth of 2% compared to 12% and 20% respectively [11]. Current Valuation - The industry is currently trading at an EV/EBITDA ratio of 25.82X, higher than the S&P 500's 18.9X and the sector's 26.87X, reflecting the debt-laden nature of automotive companies [14]. - Over the past five years, the industry has seen an EV/EBITDA range from 22.15X to 32.70X, with a median of 26.23X [15]. Stocks in Focus - **Driven Brands (DRVN)**: The largest automotive services company in North America, focusing on oil changes and maintenance, with a strong growth trajectory through franchising and a solid cash generation model. The company has a Zacks Rank of 2 (Buy) with a projected EPS growth of 16.7% for 2026 [18][19]. - **O'Reilly Automotive (ORLY)**: Known for its disciplined expansion and strong distribution network, O'Reilly has achieved record revenues for 32 consecutive years. The company has a Zacks Rank of 3 (Hold) with an expected EPS growth of 11% for 2026 [22][23]. - **AutoZone (AZO)**: With 36 years of record sales, AutoZone is expanding its hub and mega-hub stores to improve service speed and parts availability. The company has a Zacks Rank of 3 with projected EPS growth of 3% for 2026 [26][27].

Company Overview - O'Reilly Automotive, Inc. (ORLY) has a market cap of $76.3 billion and is a leading retailer and supplier of automotive aftermarket parts, tools, equipment, and accessories across the United States, Puerto Rico, Mexico, and Canada [1] - The company offers a wide range of products and services for both do-it-yourself and professional automotive repair, including maintenance items, accessories, professional tools, and enhanced programs such as battery testing, recycling, and custom hydraulic hose services [1] Financial Performance - O'Reilly Automotive is set to announce its fiscal Q4 2025 results soon, with analysts predicting an EPS of $0.72, representing a 9.1% increase from $0.66 in the same quarter last year [2] - For fiscal 2025, analysts forecast an EPS of $2.97, an 8.4% growth from $2.74 in fiscal 2024, and an anticipated increase of 11.1% year-over-year to $3.30 in fiscal 2026 [3] Recent Earnings and Stock Performance - The company reported stronger-than-expected Q3 2025 earnings of $0.85 per share and revenue of $4.71 billion, raising the lower end of its full-year revenue forecast to $17.6 billion - $17.8 billion, driven by strong demand for replacement auto parts [5] - Despite the positive earnings report, the stock fell 2.9% the following day [5] - Over the past 52 weeks, shares of O'Reilly Automotive have returned 12%, lagging behind the S&P 500 Index's 16.2% gain but outperforming the State Street Consumer Discretionary Select Sector SPDR ETF's 6.8% rise [4] Analyst Ratings - Analysts maintain a bullish consensus view on ORLY stock, with a "Strong Buy" rating overall; among 28 analysts, 21 recommend "Strong Buy," three give "Moderate Buy," and four indicate "Hold" [6] - The average analyst price target for O'Reilly Automotive is $112.08, suggesting a potential upside of nearly 24% from current levels [6]