O'Reilly Automotive (ORLY) Q2 Earnings and Revenues Lag Estimates

Core Viewpoint - O'Reilly Automotive is facing challenges with its earnings performance, as recent reports indicate a miss on both earnings and revenue estimates, raising concerns about its future stock performance and industry outlook [10][11]. Financial Performance - The company is expected to report quarterly earnings of $0.09 per share, reflecting a year-over-year increase of +80% [2]. - O'Reilly Automotive reported earnings of $10.55 per share, which fell short of the Zacks Consensus Estimate of $10.95 per share, compared to earnings of $10.22 per share a year ago [7]. - Revenues for the quarter ended June 2024 were $4.27 billion, missing the Zacks Consensus Estimate by 1.19%, and showing an increase from $4.07 billion in the same quarter last year [4]. Market Performance - O'Reilly Automotive shares have increased approximately 10.4% since the beginning of the year, while the S&P 500 has gained 16.5% [5]. - The company has surpassed consensus EPS estimates three times over the last four quarters [8]. Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $11.67, with expected revenues of $4.47 billion, and for the current fiscal year, the estimate is $41.70 on revenues of $16.86 billion [12]. - The trend of estimate revisions for O'Reilly Automotive is currently unfavorable, resulting in a Zacks Rank 4 (Sell) for the stock, indicating expectations of underperformance in the near future [11]. Industry Context - The Automotive - Retail and Wholesale - Parts industry, to which O'Reilly Automotive belongs, is currently ranked in the bottom 27% of over 250 Zacks industries, suggesting a challenging environment for the company [13].