O'Reilly Q2 Earnings Beat Estimates, '25 Revenue Outlook Raised

Core Insights - O'Reilly Automotive, Inc. (ORLY) reported Q2 2025 adjusted EPS of 78 cents, slightly exceeding the Zacks Consensus Estimate of 77 cents, and up from 70 cents in the prior-year quarter [1][10] - Quarterly revenues reached $4,525 million, missing the Zacks Consensus Estimate of $4,532 million, but reflecting a 6% year-over-year increase [1][10] Financial Performance - Comparable store sales grew by 4.1%, with the company opening 67 new stores in the U.S. and Mexico, bringing the total store count to 6,483 as of June 30, 2025 [2] - Selling, general and administrative expenses rose by 8% year-over-year to $1.41 billion, while operating income increased by 6% to $914 million [3] - Net income for the quarter was $668.6 million, up from $622.8 million in the same quarter last year [3] Share Repurchase and Cash Flow - O'Reilly repurchased 6.8 million shares for $617 million at an average price of $90.71 per share during the quarter, with an additional 1.7 million shares repurchased for $160 million post-quarter [4] - As of June 30, 2025, cash and cash equivalents stood at $198.6 million, up from $145 million a year earlier, while long-term debt increased to $5.82 billion from $5.4 billion [5] - Cash generated from operating activities was $1.51 billion, down from $1.65 billion in the prior year, with capital expenditures totaling $300.7 million compared to $225.4 million a year ago [6] 2025 Outlook - For 2025, O'Reilly revised its revenue estimate to a range of $17.5-$17.8 billion, up from the previous estimate of $17.4-$17.7 billion, and expects EPS between $2.85-$2.95 [7] - Comparable store sales growth is projected at 3-4.5%, an increase from the prior estimate of 2-4%, with free cash flow anticipated between $1.6 billion and $1.9 billion [7] - The company plans to open 200-210 new stores in 2025 [7] Market Position - O'Reilly currently holds a Zacks Rank 3 (Hold) [8] - Competitors with better rankings include Ferrari N.V. (RACE) with a Zacks Rank 1 (Strong Buy), and Gentex Corporation (GNTX) and XPeng Inc. (XPEV) both with a Zacks Rank 2 (Buy) [8]