Third quarter comparable store sales growth of 5.6%9% increase in third quarter operating income12% increase in third quarter diluted earnings per share to $0.85 SPRINGFIELD, Mo., Oct. 22, 2025 (GLOBE NEWSWIRE) -- O’Reilly Automotive, Inc. (the “Company” or “O’Reilly”) (Nasdaq: ORLY), a leading retailer in the automotive aftermarket industry, today announced record revenue and earnings for its third quarter ended September 30, 2025. 3rd Quarter Financial Results Brad Beckham, O’Reilly’s CEO, comment ...

O’Reilly Automotive, Inc. (NASDAQ:ORLY) will release earnings results for the third quarter, after the closing bell on Wednesday, Oct. 22.Analysts expect the Pittsburgh, Pennsylvania-based company to report quarterly earnings at 83 cents per share, up from 76 cents per share in the year-ago period. The consensus estimate for O’Reilly Automotive's quarterly revenue is $4.69 billion, compared to $4.36 billion a year earlier, according to data from Benzinga Pro.On July 23, O’Reilly Automotive posted in-line ea ...

O’Reilly Automotive, Inc. (NASDAQ:ORLY) will release earnings results for the third quarter, after the closing bell on Wednesday, Oct. 22.Analysts expect the Pittsburgh, Pennsylvania-based company to report quarterly earnings at 83 cents per share, up from 76 cents per share in the year-ago period. The consensus estimate for O’Reilly Automotive's quarterly revenue is $4.69 billion, compared to $4.36 billion a year earlier, according to data from Benzinga Pro.On July 23, O’Reilly Automotive posted in-line ea ...

Performance Overview - The Akre Focus Fund's Institutional share class reported a third quarter 2025 performance of -3.65%, significantly underperforming the S&P 500 Total Return, which was at 8.12% [3][4] - For the trailing 12-month period ending September 30, 2025, the Fund's Institutional share class achieved a return of 3.71%, compared to 17.60% for the S&P 500 Total Return [3] Key Holdings Impact - The primary contributor to the Fund's poor performance was a 26.06% decline in the share price of Constellation Software, which accounted for a 3.56% detriment to the Fund's performance in the quarter [5][6] - Constellation Software has been held by the Fund for over 11 years, with a compound annual rate of return of 24.97% since its initial purchase [7] Long-term Perspective on Constellation Software - Despite the recent drawdown, the Fund maintains confidence in Constellation Software's ability to navigate technological changes and protect its market position [8][9] - Constellation has demonstrated a compound annual total revenue growth rate of approximately 20% over the past decade, indicating strong underlying business performance [8] Leadership Transition - Mark Leonard, the founder of Constellation Software, announced his immediate step down from the President role due to health issues, raising concerns about leadership continuity [12][10] - The Fund expresses optimism regarding Mark Miller, the new President, who has been with Constellation since its first acquisition and is expected to uphold the company's foundational principles [14] Sector and Holdings Composition - As of September 30, 2025, the top five holdings in the Fund included Mastercard (12.4%), Brookfield Corp (10.6%), and Constellation Software (10.1%) [28] - The sector weightings revealed a significant concentration in Financials (52.1%) and Information Technology (20.7%) [28]

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Core Insights - The article discusses the impact of stock splits and share repurchase programs on investor sentiment and company performance, particularly highlighting O'Reilly Automotive as a leading example in 2025 [2][11][15]. Stock Splits - Stock splits are cosmetic changes that adjust share price and outstanding share count without affecting a company's market cap or operating performance [2]. - Forward stock splits, which lower share prices to make stocks more accessible to retail investors, are generally viewed positively, while reverse splits are often associated with struggling companies [3][4]. - In 2024, notable forward stock splits were seen in tech companies, but 2025 has shifted focus to high-profile non-tech stock splits [5]. Company Performance - Interactive Brokers Group completed its first-ever stock split (4-for-1) and replaced Walgreens Boots Alliance in the S&P 500, reflecting its successful automation investments [6][7]. - Fastenal has embraced stock splits as part of its corporate culture, completing its ninth forward split since going public [8]. - O'Reilly Automotive announced a significant 15-for-1 stock split, which was approved by shareholders, marking its largest split to date [11]. Market Trends - The average age of vehicles on U.S. roadways has increased to 12.8 years in 2025, driving demand for auto parts from companies like O'Reilly [13]. - O'Reilly's supply chain improvements, including a hub-and-spoke distribution model, enhance its ability to meet customer needs efficiently [14]. Share Repurchase Programs - O'Reilly Automotive has executed a substantial share repurchase program since January 2011, spending $26.59 billion to retire nearly 60% of its outstanding shares [16]. - The company's buyback strategy is expected to positively impact earnings per share (EPS) as it continues to deliver steady revenue and profit growth [16][17].

Industry Overview - The Zacks Automotive - Retail and Wholesale - Parts industry is currently facing challenges, with expectations of cooling vehicle sales as electric vehicle (EV) incentives expire and high prices deter buyers, impacting demand for parts and accessories [1][4] - The industry includes retailing, distribution, and installation of vehicle parts and accessories, with consumers having the option to repair vehicles themselves (DIY) or seek professional services (DIFM) [3] Factors Impacting the Industry - Vehicle sales are expected to soften due to high prices and cooling EV demand, which may lead to a decline in auto parts and accessories demand [4] - The complexity of modern vehicles is shifting repairs from DIY consumers to professional service providers, shrinking the DIY segment while expanding the DIFM side [5] - High capital demands for electrification and digital transformation are straining profitability, requiring significant investment in new technologies and distribution networks [6] - The aging U.S. vehicle fleet, with an average age of 12.8 years, is driving steady demand for replacement parts and maintenance, benefiting the aftermarket [7] Industry Performance and Valuation - The Zacks Auto Retail & Wholesale Parts industry ranks 184, placing it in the bottom 24% of 245 Zacks industries, indicating subdued near-term prospects [8][10] - Over the past year, the industry has underperformed compared to the Auto, Tires, and Truck sector and the S&P 500, with a growth of 15.5% versus the S&P 500's 16.2% and the sector's 48.1% [11] - The industry is currently trading at an EV/EBITDA ratio of 28.47X, higher than the S&P 500's 18.49X and the sector's 23.41X, reflecting the high capital demands and debt levels [14] Company Highlights - O'Reilly Automotive has achieved 32 consecutive years of record revenue growth, driven by aggressive store expansion and a strong distribution network, with plans to enhance inventory levels [19] - O'Reilly's Zacks Consensus Estimate for 2025 EPS and sales indicates year-over-year growth of 8% and 6%, respectively, with further growth projected for 2026 [20] - Advance Auto Parts has strengthened its liquidity through the sale of its Worldpac business for $1.5 billion, allowing a renewed focus on core operations and efficiency improvements [23] - Advance Auto's Zacks Consensus Estimate for 2025 EPS implies a significant year-over-year growth of 725%, with continued growth expected in 2026 [24]

Core Viewpoint - Analysts project O'Reilly Automotive (ORLY) will report quarterly earnings of $0.83 per share, a 9.2% increase year over year, with revenues expected to reach $4.7 billion, up 7.6% from the same quarter last year [1]. Earnings Projections - The consensus EPS estimate has been revised down by 0.4% in the past 30 days, reflecting a reassessment by covering analysts [2]. - Changes in earnings projections are crucial for predicting investor reactions, as empirical studies show a strong correlation between earnings estimate trends and short-term stock price movements [3]. Key Metrics Estimates - Sales to Do-It-Yourself Customers are expected to reach $2.37 billion, indicating a 6.8% increase from the prior year [5]. - Other sales and sales adjustments are projected at $119.61 million, reflecting a 2.7% increase year over year [5]. - Sales to professional service provider customers are estimated at $2.22 billion, suggesting a 9.5% year-over-year change [5]. Store and Square Footage Estimates - Total square footage is expected to be 50 million square feet, up from 48 million square feet in the same quarter last year [6]. - The total number of stores is projected to reach 6,534, compared to 6,291 a year ago [6]. - The ending domestic store count is anticipated to be 6,402, an increase from 6,187 in the same quarter last year [6]. Additional Store Metrics - The number of stores opened is likely to be 47, consistent with the previous year's figure [7]. - The ending Canada store count is expected to remain at 26, unchanged from the prior year [7]. - Domestic new stores opened are projected at 40, up from 35 a year ago [8]. - Mexico stores at the end of the period are estimated at 107, compared to 78 last year [8]. - Sales per weighted-average square foot are expected to reach $93.73 million, up from $89.17 million year over year [8]. Overall Performance - O'Reilly Automotive shares have shown a return of -2.4% over the past month, while the Zacks S&P 500 composite has increased by 0.7% [9]. - With a Zacks Rank 4 (Sell), ORLY is expected to underperform the overall market in the near future [9].

Group 1 - Publicly traded companies issue shares for various reasons, including raising capital through initial public offerings (IPOs) and secondary offerings [1] - Companies may also initiate stock splits, which do not raise money but change the number of shares and their value, maintaining overall valuation [2] - Stock splits are often executed after significant price increases, as seen with O'Reilly Automotive and Coca-Cola Consolidated, which have risen 497% and 473% over the last decade [3] Group 2 - O'Reilly Automotive operates approximately 6,500 retail stores in North America, focusing on maintenance and repair of used vehicles, achieving operating margins of 19% [5] - Analysts at TD Cowen have set a price target of $125 per share for O'Reilly, indicating a potential upside of about 21% within a one-year outlook [6] - O'Reilly is enhancing earnings per share (EPS) growth through stock buybacks, while Coca-Cola Consolidated is investing in manufacturing facilities to improve profit margins [7]

Core Insights - O'Reilly Auto Parts (ORLY) has been a strong long-term investment for Right Tail Capital, demonstrating resilience and growth despite market challenges [3][4][12] - The company has a balanced customer mix of "Do It Yourself" (DIY) and "Do It For Me" (DIFM), which positions it well against competitors like AutoZone and Advance Auto Parts [7][14] - O'Reilly's distribution advantages and strong company culture contribute to its competitive edge, allowing it to provide superior service that e-commerce platforms struggle to replicate [9][13] Historical Performance - In 2017, ORLY shares fell 30-50% due to fears of Amazon disrupting the auto parts retail market, but the company rebounded significantly, achieving a ~100x return from its IPO price [5][6] - During the COVID-19 pandemic in March 2020, ORLY shares dropped 40-50%, but the company was able to leverage its proven track record to recover and grow [11] Competitive Positioning - O'Reilly has outperformed its peers by effectively navigating supply chain disruptions and maintaining strong relationships with professional mechanics [12][14] - The company's ability to grow its DIFM business faster than AutoZone, despite AutoZone's established presence, highlights O'Reilly's operational excellence [14] Future Outlook - The ongoing need for auto parts, driven by the increasing age and complexity of vehicles, positions O'Reilly for continued growth [15] - Key drivers of O'Reilly's success include a focus on necessary products, disciplined reinvestment, and a customer-first approach [15][16]