Company Overview - O'Reilly Automotive operates in the auto parts retail sector, selling to both consumers and commercial customers, and has shown significant growth over the years [1] - A $10,000 investment in O'Reilly at the turn of the century would now be worth over $1.2 million, indicating strong historical performance [1] Growth Strategy - The company has expanded its store footprint significantly, operating 6,416 stores at the end of Q1 2025, up from 4,433 locations a decade ago, representing a 45% increase [3] - New store openings are more impactful for top-line growth compared to increasing sales from existing stores, which has been a key driver of O'Reilly's growth [3][4] - In Q1 2025, same-store sales increased by 3.6%, demonstrating effective execution on growth strategies [4] Future Growth Challenges - O'Reilly is now a much larger company, making it harder to sustain high growth rates, and it may eventually saturate its market opportunities [6] - Management plans to open up to 210 new stores in 2025, indicating ongoing growth potential as long as new locations can be profitably established [7] Financial Performance - Rising operating expenses have led to a year-over-year drop in net income in Q1 2025, although earnings per share increased due to a share buyback program [8] - The complexity of managing a larger business and increased store count may pose challenges for future profitability [9] Valuation Considerations - Current price-to-sales and price-to-earnings ratios are above their five-year averages, suggesting that the stock may be overvalued at present [9] - Historical data shows that the stock has experienced multiple drawdowns of over 20% since 2000, which could present buying opportunities for investors [10] Investment Outlook - If O'Reilly can maintain its growth trajectory, it may continue to create wealth for investors, but the larger size and complexity of the business could make this more challenging [11] - Valuation is critical; buying when the stock is expensive could reduce the likelihood of significant returns [12]

Group 1: Stock Splits and Market Trends - The rise of artificial intelligence (AI) is a significant trend, with potential to add $15.7 trillion to the global economy by 2030, benefiting AI-hardware and applications companies [1] - Companies completing forward stock splits are attracting investor interest, as these splits make shares more affordable for everyday investors [4][6] - In 2025, the first major forward stock split was completed by Fastenal, marking a trend of industry-leading companies engaging in stock splits [8][9] Group 2: Company-Specific Insights - Fastenal has completed its ninth stock split since going public, with a total return exceeding 214,000% since its IPO in August 1987 [10] - O'Reilly Automotive is set to complete a 15-for-1 forward stock split, with shares having appreciated nearly 58,000% since its IPO in April 1993, significantly outperforming the S&P 500 [16][18] - O'Reilly's competitive advantages include a growing trend of consumers keeping vehicles longer, an effective hub-and-spoke distribution model, and a robust share repurchase program, having bought back over 59% of its outstanding shares since 2011 [19][20][22]

Company Overview - O'Reilly Automotive (ORLY) shares have increased by approximately 0.9% since the last earnings report, underperforming the S&P 500 [1] Earnings Estimates - Fresh estimates for O'Reilly Automotive have trended upward over the past month [2] - The stock has a Zacks Rank of 3 (Hold), indicating expectations for an in-line return in the coming months [4] VGM Scores - O'Reilly Automotive has a strong Growth Score of A, but a low Momentum Score of F, and a Value Score of D, placing it in the bottom 40% for the value investment strategy [3] Industry Performance - O'Reilly Automotive is part of the Zacks Automotive - Retail and Wholesale - Parts industry, where Genuine Parts (GPC) has seen an 8.4% increase in the past month [5] - Genuine Parts reported revenues of $5.87 billion for the last quarter, reflecting a year-over-year increase of 1.4% [5] - Genuine Parts is expected to post earnings of $2.08 per share for the current quarter, indicating a year-over-year decline of 14.8% [6]

Group 1: Company Overview - O'Reilly Automotive is primarily a retailer of auto parts, serving both do-it-yourself and professional markets, with approximately 6,400 stores across North America [2] Group 2: Growth Strategies - The company plans to open around 200 new locations in 2025, and same-store sales increased by 3.6% in the first quarter of 2025, contributing to reasonable top-line growth [4] Group 3: Financial Performance - In the first quarter of 2025, O'Reilly's sales increased by 4%, while earnings rose only about 2%, indicating a disparity between sales growth and earnings growth [5][6] - Despite a 4% increase in sales, the company's net income fell from $547 million in Q1 2024 to $538 million in Q1 2025 due to rising selling, general, and administrative costs [8] - Earnings per share increased from $9.20 in Q1 2024 to $9.35 in Q1 2025, attributed to a 3% reduction in share count, despite lower net income [9][10] Group 4: Operational Challenges - The increase in operating costs has been a significant factor affecting profitability, with the earnings advance year over year being around 1.6%, suggesting that stock buybacks only partially mitigated the impact of rising costs [11]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ________ to ________ O'REILLY AUTOMOTIVE, INC. (Exact name of registrant as specified in its charter) incorporation or organization) Missouri 000-21318 27-4358837 (State ...

I focus on long-term investments while incorporating short-term shorts to uncover alpha opportunities. My investment approach revolves around bottom-up analysis, delving into the fundamental strengths and weaknesses of individual companies. My investment duration is the medium to long-term. Ultimately, I aim to identify companies with solid fundamentals, sustainable competitive advantages, and growth potential.Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the comp ...

O'Reilly Automotive, Inc. (NASDAQ:ORLY) Q1 2025 Earnings Conference Call April 24, 2025 11:00 AM ET Company Participants Jeremy Fletcher - Executive Vice President and Chief Financial Officer Brad Beckham - Chief Executive Officer Brent Kirby - President Conference Call Participants Michael Lasser - UBS Simeon Gutman - Morgan Stanley Greg Melich - Evercore Chris Bottiglieri - BNP Robbie Ohmes - Bank of America Kate McShane - Goldman Sachs Christopher Horvers - JPMorgan Operator Welcome to the O'Reilly Autom ...

O’Reilly Automotive, Inc. (ORLY) reported first-quarter 2025 adjusted earnings per share (EPS) of $9.35, which lagged the Zacks Consensus Estimate of $9.83. The bottom line, however, increased from $9.20 reported in the prior-year quarter.The automotive parts retailer registered quarterly revenues of $4.14 billion, missing the Zacks Consensus Estimate of $4.17 billion. The top line, however, increased 4% year over year.During the quarter, comparable store sales grew 3.6%. The company opened 38 stores in the ...

Financial Performance - First quarter 2025 revenue increased by $161 million, or 4%, to $4.14 billion from $3.98 billion year-over-year[2] - Comparable store sales grew by 3.6% in the first quarter, following a 3.4% increase in the same period last year[5] - Gross profit for the first quarter rose 4% to $2.12 billion, representing 51.3% of sales, compared to 51.2% of sales last year[2] - Net income decreased by $9 million, or 2%, to $538 million, which is 13.0% of sales, down from 13.8% last year[3] - Sales for the three months ended March 31, 2025, reached $4.14 billion, up from $3.98 billion in the same period of 2024, representing a year-over-year increase of 4.02%[18] - Net income for the three months ended March 31, 2025, was $538.49 million, compared to $547.24 million in 2024, a decline of 1.36%[18] - Earnings per share (basic) increased to $9.40 for Q1 2025, compared to $9.27 in Q1 2024, reflecting a growth of 1.40%[18] Guidance and Future Plans - The company maintained its full-year comparable store sales guidance of 2.0% to 4.0%[2] - Total revenue guidance for 2025 is set between $17.4 billion and $17.7 billion[7] - Operating income as a percentage of sales is expected to be between 19.2% and 19.7% for the full year[7] - The company plans to open 200 to 210 new stores in 2025, with 38 net new store openings in the first quarter[7] - The company plans to continue its growth strategy with a focus on new store openings and potential acquisitions in key markets[22] Cash Flow and Assets - Net cash provided by operating activities for the first quarter was $755 million[4] - Net cash provided by operating activities was $755.12 million for the three months ended March 31, 2025, compared to $704.22 million in 2024, an increase of 7.24%[19] - Free cash flow for the first quarter of 2025 was $455.24 million, up from $438.86 million in the same period of 2024, representing a growth of 3.70%[21] - Total assets increased to $15.29 billion as of March 31, 2025, compared to $14.21 billion a year earlier, reflecting a growth of 7.57%[16] Inventory and Liabilities - Total current liabilities increased to $8.51 billion as of March 31, 2025, from $7.89 billion a year earlier, marking a rise of 7.83%[16] - Inventory turnover ratio was 1.6 for the twelve months ended March 31, 2025, slightly down from 1.7 in 2024, suggesting a minor decrease in inventory efficiency[21] - The company maintained a stable inventory management strategy, with inventory calculated as accounts payable divided by inventory[23] Store Expansion and Employment - The total number of domestic stores increased to 6,298, with 33 new stores opened during the quarter, compared to 36 new stores opened in the same quarter of 2024[22] - The company expanded its presence in Mexico, opening 6 new stores, bringing the total to 93, up from 63 in the previous year[22] - Total employment rose to 93,419, an increase from 90,601 in the prior year, indicating growth in workforce to support expansion[22] - The total ending store count across all regions reached 6,416, an increase from 6,217 in the previous year, reflecting ongoing market expansion efforts[22] Sales Performance - Sales to do-it-yourself customers amounted to $2,051,859, up from $2,003,805, while sales to professional service provider customers increased to $1,998,593 from $1,875,186, reflecting strong demand in both segments[22] - The weighted-average sales per square foot for the three months ended March 31, 2025, was $82.22, slightly down from $82.59 in the same period of 2024[22] - Sales per weighted-average store for the twelve months ended March 31, 2025, was $2,650, compared to $2,601 in the previous year, showing improved productivity[22] Debt Management - Adjusted debt to EBITDAR ratio improved to 2.03 in 2025 from 1.95 in 2024, indicating better leverage management[21]

Core Insights - O'Reilly Automotive, Inc. reported record revenue for Q1 2025, with a total revenue of $4.14 billion, an increase of $161 million or 4% compared to $3.98 billion in Q1 2024 [2][3] - Comparable store sales increased by 3.6% in Q1 2025, building on a 3.4% increase in the same period last year, driven by growth in both professional and DIY segments [2][4] - The company maintains its full-year comparable store sales guidance of 2.0% to 4.0% and plans to open 200 to 210 new stores by the end of 2025 [2][8] Financial Performance - Gross profit for Q1 2025 was $2.12 billion, representing 51.3% of sales, up from $2.03 billion or 51.2% of sales in Q1 2024 [2][3] - Selling, general, and administrative expenses rose by 8% to $1.38 billion, accounting for 33.4% of sales, compared to 32.2% in the previous year [2] - Operating income decreased by 1% to $741 million, or 17.9% of sales, down from $752 million or 18.9% of sales in Q1 2024 [2][3] Net Income and Earnings - Net income for Q1 2025 was $538 million, a decrease of $9 million or 2% from $547 million in Q1 2024, representing 13.0% of sales compared to 13.8% [3][18] - Diluted earnings per share increased by 2% to $9.35 on 58 million shares, compared to $9.20 on 59 million shares in the same period last year [3][18] Share Repurchase Program - In Q1 2025, the company repurchased 0.4 million shares at an average price of $1,297.15, totaling an investment of $559 million [5][7] - An additional 0.1 million shares were repurchased after Q1 at an average price of $1,378.80, totaling $122 million [5][7] Cash Flow and Capital Expenditures - Net cash provided by operating activities for Q1 2025 was $755 million, an increase from $704 million in Q1 2024 [6][23] - Capital expenditures for Q1 2025 were $287 million, compared to $249 million in the same period last year [19][23] Store Expansion - The company opened 38 new stores in Q1 2025, contributing to a total of 6,416 stores across the U.S., Puerto Rico, Mexico, and Canada as of March 31, 2025 [2][24] - The company plans to continue its expansion strategy with a target of 200 to 210 new store openings for the full year [8][24]