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O'Reilly Automotive on watch after Oppenheimer calls it a compelling mid-term pick
Oppenheimer pushes up its rating on O’Reilly Auto (ORLY) to Outperform from Market Perform. "As we continue to consider carefully prospects for a post-COVID-19 consumer backdrop, we have turned increasingly
Seekingalpha · 3d ago
Here are Tuesday's biggest analyst calls of the day: GE, Microsoft, Ulta, Target & more
Here are the biggest calls on Wall Street on Tuesday.
CNBC.com · 3d ago
Election 2020: Retailers at risk from higher minimum wages in Florida
UBS breaks down the burning question of what the impact of a rising minimum wage in Florida will mean on the retail sector.Florida passed a measure that will raise the
Seekingalpha · 11/05 15:47
A 'historic compounder' retailer usually at 20% premium is at a 10% discount coming out of earnings, Evercore says
A solid third quarter reported out Wednesday hasn't spared O'Reilly Automotive (ORLY) from the market's sell-off, as shares dipped 1.4% Thursday, but Evercore ISI saw the results confirming its stance
Seekingalpha · 10/30 23:54
CarParts.com vs OReilly: Which Auto Retailer Is Poised To Rally Ahead?
Recent results of used-car retailers are indicating consumers’ preference to travel in their own vehicle rather than using public transportation amid rising COVID-19 cases. Also, in a challenging macro environment, consumers prefer maintaining their existing vehicles or buying used cars rather than new cars due to limited spending capacity.The demand for aftermarket auto parts is also rising at a strong rate mainly because of people spending extra time at home amid the pandemic on DIY repairs and maintenance projects.Keeping in mind the rising demand in the aftermarket auto parts space, we will use the TipRanks Stock Comparison tool to compare CarParts.com and O’Reilly Automotive and see which retailer is a better pick in the current environment.CarParts.com (PRTS)CarParts.com is an e-commerce company that aims to provide a seamless factory-to-consumer online shopping experience. Following its inclusion in the Russell 2000 Index, the company changed its name from U.S. Auto Parts Network to CarParts.com in July to reflect the way it has leveraged technology and e-commerce expertise to increase sales and profitability.The company directly reaches the customers through its own distribution network, thus cutting out much of the brick-and-mortar supply chain costs. This enables it to offer auto parts and accessories at competitive prices. A notable aspect of CarParts.com is that it also sells its products through third-party marketplaces. Sales on eBay and Amazon accounted for 34.9% of total sales in the first half of 2020.Pandemic-induced demand changed CarParts.com’s fortunes. The company’s sales grew 39% in the first half of this year following a 3% sales decline in full-year 2019. Notably, sales surged 61.4% to $118.9 million in 2Q driven by triple-digit revenue growth in the company’s flagship website CarParts.com (the company earlier operated other websites too but has now consolidated them into one).Online sales (includes e-commerce and online marketplace channels) grew about 69% and contributed about 95% of 2Q sales. Meanwhile, offline sales (includes sales from the company’s private-label brand Kool-Vue and wholesale operations) fell 9.6% due to lower sales from wholesale operations.Meanwhile, 2Q gross margin expanded 480 basis points Y/Y to 34.3% and marked the sixth consecutive quarter of gross margin improvement for the company. The 2Q gross margin was driven by favorable product mix and supply chain optimizations. Strong sales and margin expansion helped the company deliver EPS of $0.03 in 2Q20 compared to a loss per share of $0.04 in 2Q19.CarParts.com’s expanded distribution footprint, improved site speed and faster shipping times are helping it in meeting the increased demand for auto parts amid the pandemic. On the 2Q conference call, the company said that even after the reopening of the economy after lockdowns, demand continues to be strong and is outpacing supply.Commenting about the upcoming 3Q results, Roth Capital analyst Darren Aftahi stated “3Q traffic trends to Carparts.com showed improvement q/q from 2Q levels, suggesting strong results could be on the horizon.”Aftahi reiterated a Buy rating with a price target of $17 and said that he expects revenue growth of about 43.6%, gross margin of about 34.6% and a net loss of $0.01 per share in 3Q. (See PRTS stock analysis on TipRanks)Carparts.com scores a Strong Buy rating from the Street based on 5 unanimous Buys. Shares have surged by a staggering 515% year-to-date and the average analyst price target of $18.40 indicates further upside potential of about 36% in the coming months.O’Reilly Automotive (ORLY)O’Reilly Automotive is one of the largest aftermarket auto parts specialty retailers and operates 5,592 stores in the US and 21 stores in Mexico. The company also sells its products through its e-commerce site. O’Reilly’s performance has been quite consistent. It has delivered comparable sales growth for 27 consecutive years and double-digit EPS growth for 11 straight years.The company’s first-quarter sales growth of 2.7% reflected the impact of lockdowns. But, business bounced back in 2Q and sales grew 19.4%. Aside from pandemic-induced demand for auto parts, O’Reilly and its peers have also credited government stimulus and unemployment benefits for the growing demand in the aftermarket auto parts industry in recent months.On Oct. 28, O’Reilly reported better-than-expected 3Q results. Sales grew 20.3% to $3.2 billion with comparable sales rising 16.9% on strong DIY demand. The company said that its professional or DIFM (do-it-for-me) business also performed better-than-anticipated. The 3Q EPS increased 39.2% Y/Y to $7.07 driven by higher sales and increased operating margin.The company’s operating margin expanded 250 basis points Y/Y to 22.6% in 3Q driven by strong sales and expense management. However, gross margin contracted 96 basis points Y/Y to 52.4% as the comparable quarter in the prior year gained from sell-through of pre-tariff on-hand inventory. Also, the lower gross margin sales from the acquired Mayasa stores impacted the 3Q gross margin.Following the upbeat performance in the recent quarters, O’Reilly raised its share repurchase authorization by $1 billion, bringing the overall authorization under its buyback program to $14.75 billion.Looking ahead at 4Q, O’Reilly stated that comparable store sales are so far strong and are trending slightly below its 3Q exit rate in the low double-digit range.Meanwhile, O’Reilly continues to expand its store fleet. It opened 153 net new stores in the first nine months of 2020. The company also opened a distribution center in Lebanon, Tennessee in 1Q and plans to open another facility in Horn Lake, Mississippi, in the first half of 2021.Following the earnings release, Wells Fargo analyst Zachary Fadem reiterated a Buy rating and a price target of $525 for O'Reilly, saying “While gross margin (-96bps) could prove the single blemish on an otherwise exceptional print, we believe ORLY is taking outsized share and anticipate another round of upward EPS revisions. All in, we continue to view auto part retailers as underappreciated in today’s environment, and are constructive on ORLY’s best-in-class execution, non-discretionary assortment and NT [near time] upside from share gains and incremental stimulus.”The analyst also said that he sees “increasingly favorable risk/reward and would be aggressive buyers on weakness.” (See ORLY stock analysis on TipRanks)The Street is cautiously optimistic about O’Reilly. A Moderate Buy consensus for the stock is based on 8 Buys and 4 Holds with no Sells. The average analyst price target of $523.50 indicates an upside potential of about 20% to the current levels. Shares are down 0.46% year-to-date.ConclusionO’Reilly is a consistent performer and a well-established auto parts retailer. However, in the current business environment, CarParts.com’s e-commerce business model looks lucrative. Right now, CarParts.com stock appears to be more attractive than O’Reilly as reflected by the Street’s highly bullish stance and greater upside potential in the stock.To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment More recent articles from Smarter Analyst: * LivePerson Shares Fall 4% After Hours On Higher 3Q Loss * Astrazeneca Scores $286.9M US Army Contract For Covid Vaccine * Eli Lilly Nabs $312.5M US Army Contract For Covid-19 Treatment * Opko Health Tanks 10% Despite Solid Q3 Covid Testing Revenue
SmarterAnalyst · 10/30 08:28
O'Reilly Automotive, Inc. to Host Earnings Call
NEW YORK, NY / ACCESSWIRE / October 29, 2020 / O'Reilly Automotive, Inc.
ACCESSWIRE · 10/29 14:45
OReilly Bumps Up Share Buyback Plan By $1B After 3Q Profit Beat
O’Reilly Automotive’s 3Q earnings of $7.07 per share topped analysts’ estimates of $6.19 and grew 39% from the year-ago quarter, driven by operating margin expansion. Following the earnings beat, the auto parts retailer raised its share repurchase authorization by $1 billion, bringing the total buyback program to $14.75 billion.O’Reilly’s (ORLY) 3Q revenues of $3.21 billion increased 20.3% year-over-year and outpaced the Street consensus of $2.98 billion. Revenues grew on the back of a 16.9% increase in comparable store sales (comps).O’Reilly’s CEO Greg Johnson said “Our Team’s hard work and commitment to expense control resulted in another extremely profitable quarter, exemplified by our 22.6% operating profit margin, which represents a 249 basis point improvement over the prior year.” However, he also added that “We continue to maintain a cautious approach to managing our operating costs in these uncertain economic conditions and remain steadfastly focused on providing the excellent customer service that drives long-term profitable growth.” (See ORLY stock analysis on TipRanks)Following 3Q results, Wells Fargo analyst Zachary Fadem maintained his Buy rating and a price target of $525 (18.7% upside potential). The 5-star analyst said “we continue to view auto part retailers as underappreciated in today’s environment, and are constructive on ORLY’s best-in-class execution, non-discretionary assortment and NT [near term] upside from share gains and incremental stimulus.” He also sees “increasingly favorable risk/reward and would be aggressive buyers on weakness.”Currently, the Street has a cautiously optimistic outlook on the stock. The Moderate Buy analyst consensus is based on 9 Buys and 5 Holds. The average price target of $517.31 implies upside potential of about 16.9% to current levels. Shares are trading about 1% higher than at the beginning of the year.Related News: Visa 4Q Sales Sink 17% As Travel Freeze Hurts Payment Volumes eBay Slips 4% As Online Goods Growth Volume Slows Pinterest’s Blowout 3Q Sends Shares Up 32% More recent articles from Smarter Analyst: * Moderna Scores $1.1B From Covid-19 Vaccine Deposits; Shares Rise 3% * Medtronic Nabs FDA Approval For Nerve Monitoring System * Etsy Beats Q3 Estimates On Robust Online Demand * Novartis Snaps Up Vedero Bio In $280M Deal; Street Says Buy
SmarterAnalyst · 10/29 13:23
O'Reilly Automotive (ORLY) Tops Q3 Earnings and Revenue Estimates
O'Reilly Automotive (ORLY) delivered earnings and revenue surprises of 11.51% and 7.71%, respectively, for the quarter ended September 2020. Do the numbers hold clues to what lies ahead for the stock?
Zacks · 10/28 23:05
OReilly Automotive, Inc. Reports Third Quarter 2020 Results and Announces Additional $1.0 Billion Share Repurchase Authorization
* Third quarter comparable store sales increase of 16.9%, total sales growth of 20.3% * 39% increase in third quarter diluted earnings per share to $7.07 * Net cash provided by operating activities increased $859 million or 57.7% SPRINGFIELD, Mo., Oct. 28, 2020 (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, 2020.3rd Quarter Financial Results Greg Johnson, O’Reilly’s CEO and Co-President, commented, “The COVID-19 pandemic continues to present a significant challenge to consumers, and our number one priority continues to be protecting the health and wellness of our Team Members and customers. We are extremely proud of Team O’Reilly’s ongoing hard work and dedication to serving each community where we do business, as well as their ability to deliver another outstanding quarter while providing excellent customer service during these difficult times. Our Team’s tireless efforts resulted in our second consecutive quarter of over 16% comparable store sales growth. Our DIY business was again a larger contributor to our comparable store sales growth; however, our professional business performed very well, again generating comparable store sales above our expectations during the quarter. We were pleased with our strong sales performance throughout the third quarter, and our business has continued to perform very well through the first three weeks of October, generating robust comparable store sales in the low double digits.”Mr. Johnson further commented, “Our Team’s hard work and commitment to expense control resulted in another extremely profitable quarter, exemplified by our 22.6% operating profit margin, which represents a 249 basis point improvement over the prior year, and a 39.2% increase in diluted earnings per share to $7.07. Through the first nine months of 2020, we also generated significant growth in cash provided by operations and free cash flow, increasing both metrics by over $850 million. We continue to maintain a cautious approach to managing our operating costs in these uncertain economic conditions and remain steadfastly focused on providing the excellent customer service that drives long-term profitable growth. Finally, we would like to thank all of Team O’Reilly for your tremendous determination and relentless dedication to taking care of our customers each day – your countless contributions are absolutely the driver to our ongoing success.”Sales for the third quarter ended September 30, 2020, increased $541 million, or 20%, to $3.21 billion from $2.67 billion for the same period one year ago. Gross profit for the third quarter increased 18% to $1.68 billion (or 52.4% of sales) from $1.42 billion (or 53.3% of sales) for the same period one year ago. Selling, general and administrative expenses (“SG&A”) for the third quarter increased 8% to $955 million (or 29.8% of sales) from $886 million (or 33.2% of sales) for the same period one year ago. Operating income for the third quarter increased 35% to $725 million (or 22.6% of sales) from $536 million (or 20.1% of sales) for the same period one year ago.Net income for the third quarter ended September 30, 2020, increased $136 million, or 35%, to $527 million (or 16.4% of sales) from $391 million (or 14.7% of sales) for the same period one year ago. Diluted earnings per common share for the third quarter increased 39% to $7.07 on 75 million shares versus $5.08 on 77 million shares for the same period one year ago.Year-to-Date Financial Results Sales for the first nine months of 2020 increased $1.11 billion, or 14%, to $8.78 billion from $7.67 billion for the same period one year ago. Gross profit for the first nine months of 2020 increased 13% to $4.61 billion (or 52.6% of sales) from $4.07 billion (or 53.1% of sales) for the same period one year ago. SG&A for the first nine months of 2020 increased 5% to $2.73 billion (or 31.1% of sales) from $2.59 billion (or 33.8% of sales) for the same period one year ago. Operating income for the first nine months of 2020 increased 27% to $1.89 billion (or 21.5% of sales) from $1.48 billion (or 19.3% of sales) for the same period one year ago.Net income for the first nine months of 2020 increased $293 million, or 28%, to $1.36 billion (or 15.5% of sales) from $1.07 billion (or 13.9% of sales) for the same period one year ago. Diluted earnings per common share for the first nine months of 2020 increased 33% to $18.12 on 75 million shares versus $13.63 on 78 million shares for the same period one year ago.3rd Quarter Comparable Store Sales Results Comparable store sales are calculated based on the change in sales for U.S. stores open at least one year and exclude sales of specialty machinery, sales to independent parts stores and sales to Team Members, as well as sales from Leap Day in the nine months ended September 30, 2020. Online sales, resulting from ship-to-home orders and pick-up-in-store orders, for U.S. stores open at least one year, are included in the comparable store sales calculation. Comparable store sales increased 16.9% for the third quarter ended September 30, 2020, on top of 5.0% for the same period one year ago. Comparable store sales increased 10.7% for the nine months ended September 30, 2020, on top of 3.9% for the same period one year ago.Share Repurchase Program During the third quarter ended September 30, 2020, the Company repurchased 1.0 million shares of its common stock, at an average price per share of $458.70, for a total investment of $443 million. During the first nine months ended of 2020, the Company repurchased 2.6 million shares of its common stock, at an average price per share of $415.28, for a total investment of $1.09 billion. Subsequent to the end of the third quarter and through the date of this release, the Company repurchased an additional 0.7 million shares of its common stock, at an average price per share of $458.97, for a total investment of $313 million. The Company has repurchased a total of 79.5 million shares of its common stock under its share repurchase program since the inception of the program in January of 2011 and through the date of this release, at an average price of $170.92, for a total aggregate investment of $13.59 billion.Today, the Company also announced that its Board of Directors (the “Board”) approved a resolution to increase the authorization amount under its share repurchase program by an additional $1.0 billion, raising the aggregate authorization under the program to $14.75 billion. The additional $1.0 billion authorization is effective for a three-year period, beginning on October 28, 2020. Stock repurchases under the program may be made from time to time, as the Company deems appropriate, solely through open market repurchases effected through a broker dealer at prevailing market prices, based on a variety of factors such as price, corporate requirements and overall market conditions. There can be no assurance as to the number of shares the Company will purchase, if any. The share repurchase program may be increased or otherwise modified, renewed, suspended or terminated by the Company at any time, without prior notice. As of the date of this release, the Company had approximately $1.16 billion remaining under its current share repurchase authorizations.Continued Suspension of Guidance As previously announced, the Company withdrew all previously issued 2020 guidance, and given the ongoing uncertainty related to COVID-19, the Company is not resuming guidance at this time.Non-GAAP Information This release contains certain financial information not derived in accordance with United States generally accepted accounting principles (“GAAP”). These items include adjusted debt to earnings before interest, taxes, depreciation, amortization, share-based compensation and rent (“EBITDAR”) and free cash flow. The Company does not, nor does it suggest investors should, consider such non-GAAP financial measures in isolation from, or as a substitute for, GAAP financial information. The Company believes that the presentation of adjusted debt to EBITDAR and free cash flow provide meaningful supplemental information to both management and investors that is indicative of the Company’s core operations. The Company has included a reconciliation of this additional information to the most comparable GAAP measure in the selected financial information below.Earnings Conference Call Information The Company will host a conference call on Thursday, October 29, 2020, at 10:00 a.m. Central Time to discuss its results as well as future expectations. Investors may listen to the conference call live on the Company’s website at www.OReillyAuto.com by clicking on “Investor Relations” and then “News Room.” Interested analysts are invited to join the call. The dial-in number for the call is (703) 375-5524; the conference call identification number is 3669318. A replay of the conference call will be available on the Company’s website through Thursday, October 28, 2021.About O’Reilly Automotive, Inc. O’Reilly Automotive, Inc. was founded in 1957 by the O’Reilly family and is one of the largest specialty retailers of automotive aftermarket parts, tools, supplies, equipment and accessories in the United States, serving both the do-it-yourself and professional service provider markets. Visit the Company’s website at www.OReillyAuto.com for additional information about O’Reilly, including access to online shopping and current promotions, store locations, hours and services, employment opportunities and other programs. As of September 30, 2020, the Company operated 5,592 stores in 47 U.S. states and 21 stores in Mexico.Forward-Looking Statements The Company claims the protection of the safe-harbor for forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. You can identify these statements by forward-looking words such as “estimate,” “may,” “could,” “will,” “believe,” “expect,” “would,” “consider,” “should,” “anticipate,” “project,” “plan,” “intend” or similar words. In addition, statements contained within this press release that are not historical facts are forward-looking statements, such as statements discussing, among other things, expected growth, store development, integration and expansion strategy, business strategies, future revenues and future performance. These forward-looking statements are based on estimates, projections, beliefs and assumptions and are not guarantees of future events and results. Such statements are subject to risks, uncertainties and assumptions, including, but not limited to, the COVID-19 pandemic or other public health crisis, the economy in general, inflation, tariffs, product demand, the market for auto parts, competition, weather, risks associated with the performance of acquired businesses, our ability to hire and retain qualified employees, consumer debt levels, our increased debt levels, credit ratings on public debt, governmental regulations, information security and cyber-attacks, terrorist activities, war and the threat of war. Actual results may materially differ from anticipated results described or implied in these forward-looking statements. Please refer to the “Risk Factors” section of the annual report on Form 10-K for the year ended December 31, 2019, and subsequent Securities and Exchange Commission filings for additional factors that could materially affect the Company’s financial performance. Forward-looking statements speak only as of the date they were made and the Company undertakes no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law.For further information contact:Investor & Media Contacts  Mark Merz (417) 829-5878  Eric Bird (417) 868-4259    O’REILLY AUTOMOTIVE, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands, except share data)             September 30, 2020 September 30, 2019 December 31, 2019   (Unaudited) (Unaudited) (Note) Assets          Current assets:          Cash and cash equivalents $ 1,627,098  $42,804  $40,406  Accounts receivable, net   243,192   224,033   214,915  Amounts receivable from suppliers   90,341   76,107   79,492  Inventory   3,527,495   3,348,631   3,454,092  Other current assets   45,315   32,914   44,757  Total current assets   5,533,441   3,724,489   3,833,662             Property and equipment, at cost   6,497,065   6,053,306   6,191,427  Less: accumulated depreciation and amortization   2,424,168   2,182,599   2,243,224  Net property and equipment   4,072,897   3,870,707   3,948,203             Operating lease, right-of-use assets   1,913,897   1,908,931   1,928,369  Goodwill   873,717   808,259   936,814  Other assets, net   109,999   60,338   70,112  Total assets $ 12,503,951  $10,372,724  $10,717,160             Liabilities and shareholders’ equity          Current liabilities:          Accounts payable $ 4,083,805  $3,606,571  $3,604,722  Self-insurance reserves   91,118   75,158   79,079  Accrued payroll   127,841   104,161   100,816  Accrued benefits and withholdings   202,198   87,386   98,539  Income taxes payable   4,553   100,472   —  Current portion of operating lease liabilities   318,533   308,726   316,061  Other current liabilities   341,553   298,380   270,210  Current portion of long-term debt   499,783   —   —  Total current liabilities   5,669,384   4,580,854   4,469,427             Long-term debt   4,122,424   3,703,628   3,890,527  Operating lease liabilities, less current portion   1,640,646   1,642,178   1,655,297  Deferred income taxes   174,177   117,551   133,280  Other liabilities   188,095   162,294   171,289             Shareholders’ equity:          Common stock, $0.01 par value:          Authorized shares – 245,000,000          Issued and outstanding shares –          73,272,379 as of September 30, 2020,          75,727,781 as of September 30, 2019, and          75,618,659 as of December 31, 2019   733   757   756  Additional paid-in capital   1,303,699   1,259,544   1,280,760  Retained deficit   (578,172)  (1,094,082)  (889,066) Accumulated other comprehensive (loss) income   (17,035)  —   4,890  Total shareholders’ equity   709,225   166,219   397,340             Total liabilities and shareholders’ equity $ 12,503,951  $10,372,724  $10,717,160  Note: The balance sheet at December 31, 2019, has been derived from the audited consolidated financial statements at that date but does not include all of the information and footnotes required by United States generally accepted accounting principles for complete financial statements. O’REILLY AUTOMOTIVE, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF INCOME (In thousands, except per share data)                For the Three Months Ended  For the Nine Months Ended   September 30,  September 30,    2020  2019 2020  2019 Sales $ 3,207,638  $2,666,528  $ 8,775,720  $7,667,010  Cost of goods sold, including warehouse and distribution expenses   1,527,170   1,243,998    4,162,166   3,596,903  Gross profit   1,680,468   1,422,530    4,613,554   4,070,107                Selling, general and administrative expenses   955,455   886,167    2,728,490   2,590,884  Operating income   725,013   536,363    1,885,064   1,479,223                Other income (expense):             Interest expense   (41,668)  (35,858)   (122,777)  (104,687) Interest income   582   656    1,892   1,813  Other, net   2,479   732    2,297   4,667  Total other expense   (38,607)  (34,470)   (118,588)  (98,207)               Income before income taxes   686,406   501,893    1,766,476   1,381,016  Provision for income taxes   159,154   110,600    407,119   314,890  Net income $ 527,252  $391,293  $ 1,359,357  $1,066,126                Earnings per share-basic:             Earnings per share $ 7.13  $5.14  $ 18.28  $13.77  Weighted-average common shares outstanding – basic   73,916   76,172    74,377   77,415                Earnings per share-assuming dilution:             Earnings per share $ 7.07  $5.08  $ 18.12  $13.63  Weighted-average common shares outstanding – assuming dilution   74,586   76,969    75,026   78,220  O’REILLY AUTOMOTIVE, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands)          For the Nine Months Ended   September 30,    2020  2019 Operating activities:       Net income $ 1,359,357  $1,066,126  Adjustments to reconcile net income to net cash provided by operating activities:       Depreciation and amortization of property, equipment and intangibles   231,510   200,382  Amortization of debt discount and issuance costs   3,300   2,898  Deferred income taxes   32,249   12,383  Share-based compensation programs   17,062   16,578  Other   2,576   5,830  Changes in operating assets and liabilities:       Accounts receivable   (34,970)  (38,892) Inventory   (76,239)  (154,986) Accounts payable   481,431   228,943  Income taxes payable   123,581   90,383  Other   209,272   60,031  Net cash provided by operating activities   2,349,129   1,489,676          Investing activities:       Purchases of property and equipment   (363,425)  (481,207) Proceeds from sale of property and equipment   11,690   5,479  Investment in tax credit equity investments   (95,292)  (17,988) Other   (312)  661  Net cash used in investing activities   (447,339)  (493,055)         Financing activities:       Proceeds from borrowings on revolving credit facility   1,162,000   2,192,000  Payments on revolving credit facility   (1,423,000)  (2,404,000) Proceeds from the issuance of long-term debt   997,515   499,955  Payment of debt issuance costs   (7,779)  (3,991) Repurchases of common stock   (1,094,000)  (1,307,983) Net proceeds from issuance of common stock   51,174   39,077  Other   (253)  (190) Net cash used in financing activities   (314,343)  (985,132)         Effect of exchange rate changes on cash   (755)  —  Net increase in cash and cash equivalents   1,586,692   11,489  Cash and cash equivalents at beginning of the period   40,406   31,315  Cash and cash equivalents at end of the period $ 1,627,098  $42,804          Supplemental disclosures of cash flow information:       Income taxes paid $ 250,484  $218,386  Interest paid, net of capitalized interest   118,397   110,014  O’REILLY AUTOMOTIVE, INC. AND SUBSIDIARIES SELECTED FINANCIAL INFORMATION (Unaudited)             For the Twelve Months Ended   September 30,  Adjusted Debt to EBITDAR: 2020 2019 (In thousands, except adjusted debt to EBITDAR ratio)         GAAP debt $ 4,622,207  $3,703,628  Add:Letters of credit   66,527   39,104   Discount on senior notes   5,352   3,723   Debt issuance costs   22,441   17,649   Six-times rent expense   2,093,556   2,005,494  Adjusted debt $ 6,810,083  $5,769,598            GAAP net income $ 1,684,273  $1,366,483  Add:Interest expense   158,065   136,155   Provision for income taxes   491,516   407,690   Depreciation and amortization   302,003   266,001   Share-based compensation expense   22,405   21,610   Rent expense (i)   348,926   334,249  EBITDAR $ 3,007,188  $2,532,188            Adjusted debt to EBITDAR   2.26   2.28  (i) The table below outlines the calculation of Rent expense and reconciles Rent expense to Total lease cost, per ASC 842, the most directly comparable GAAP financial measure, for the twelve months ended September 30, 2020 and for the nine and twelve months ended September 30, 2019 (in thousands):        Total lease cost, per ASC 842, for the twelve months ended September 30, 2020 $413,314  Less:Variable non-contract operating lease components, related to property taxes and insurance, for the twelve months ended September 30, 2020  64,388  Rent expense for the twelve months ended September 30, 2020 $348,926         Total lease cost, per ASC 842, for the nine months ended September 30, 2019 $298,185  Less:Variable non-contract operating lease components, related to property taxes and insurance, for the nine months ended September 30, 2019  44,531  Rent expense for the nine months ended September 30, 2019  253,654  Add:Rent expense for the three months ended December 31, 2018, as previously reported prior to the adoption of ASC 842  80,595  Rent expense for the twelve months ended September 30, 2019 $334,249              September 30,    2020 2019 Selected Balance Sheet Ratios:         Inventory turnover (1)   1.5   1.4  Average inventory per store (in thousands) (2) $ 628  $618  Accounts payable to inventory (3)   115.8%  107.7%                       For the Three Months Ended  For the Nine Months Ended    September 30,  September 30,     2020 2019 2020 2019 Reconciliation of Free Cash Flow (in thousands):                 Net cash provided by operating activities $ 790,051  $642,672  $ 2,349,129  $1,489,676  Less:Capital expenditures   118,954   185,599    363,425   481,207   Excess tax benefit from share-based compensation payments   8,326   2,337    14,786   13,059   Investment in tax credit equity investments   —   16,271    95,292   17,988  Free cash flow $ 662,771  $438,465  $ 1,875,626  $977,422                   For the Three Months Ended  For the Nine Months Ended  For the Twelve Months Ended   September 30,  September 30,  September 30,    2020  2019 2020  2019  2020  2019 Store Count:              Beginning store count  5,562  5,344   5,439  5,219   5,420  5,190  New stores opened  36  76   162  183   181  212  Bennett stores acquired, net of stores merged (4)  —  —   —  20   —  20  Stores closed  (6) —   (9) (2)  (9) (2) Ending domestic store count  5,592  5,420   5,592  5,420   5,592  5,420                 Mexico stores (5)  21  —   21  —   21  —  Ending total store count  5,613  5,420   5,613  5,420   5,613  5,420                      For the Three Months Ended  For the Twelve Months Ended   September 30,  September 30,    2020 2019 2020 2019 Store and Team Member Information: (6)                 Total employment   76,027   82,163          Square footage (in thousands)   41,591   40,070          Sales per weighted-average square foot (7) $ 76.14  $66.73  $ 271.62  $253.82  Sales per weighted-average store (in thousands) (8) $ 566  $493  $ 2,014  $1,871  (1) Calculated as cost of goods sold for the last 12 months divided by average inventory. Average inventory is calculated as the average of inventory for the trailing four quarters used in determining the denominator. (2) Calculated as inventory divided by store count at the end of the reported period. (3) Calculated as accounts payable divided by inventory. (4) O’Reilly acquired 33 Bennett Auto Supply, Inc. (“Bennett”) stores after the close of business on December 31, 2018, which were not included in the December 31, 2018, store count, as they were not operated by the Company for any portion of 2018. During the first quarter ended March 31, 2019, O’Reilly merged eight of the acquired Bennett stores into existing O’Reilly locations, and during the second quarter ended June 30, 2019, O’Reilly merged an additional five acquired Bennett stores into existing O’Reilly locations. (5) O’Reilly acquired Mayoreo de Autopartes y Aceites, S.A. de C.V. (“Mayasa”), headquartered in Guadalajara, Jalisco, Mexico, after the close of business on November 29, 2019. (6) Represents O’Reilly’s U.S. operations only. (7) Calculated as sales less jobber sales, divided by weighted-average square footage. Weighted-average square footage is determined by weighting store square footage based on the approximate dates of store openings, acquisitions, expansions or closures. (8) Calculated as sales less jobber sales, divided by weighted-average stores. Weighted-average stores is determined by weighting stores based on their approximate dates of openings, acquisitions or closures.
GlobeNewswire · 10/28 21:30
O'Reilly Automotive Q3 EPS $7.07 Beats $6.19 Estimate, Sales $3.21B Beat $2.98B Estimate
O'Reilly Automotive (NASDAQ:ORLY) reported quarterly earnings of $7.07 per share which beat the analyst consensus estimate of $6.19 by 14.22 percent. This is a 39.17 percent increase over earnings of $5.08 per share from
Benzinga · 10/28 21:00
O'Reilly Automotive EPS beats by $0.66, beats on revenue
O'Reilly Automotive (ORLY): Q3 GAAP EPS of $7.07 beats by $0.66.Revenue of $3.21B (+20.2% Y/Y) beats by $170M.Comparable store sales of +16.9% vs. consensus of 11.2%.Stock +1.43% AH.Press Release
Seekingalpha · 10/28 20:34
O'Reilly Automotive Q3 2020 Earnings Preview
O'Reilly Automotive (NASDAQ:ORLY) is scheduled to announce Q3 earnings results on Wednesday, October 28th, after market close.The consensus EPS Estimate is $6.44 (+26.8% Y/Y) and the consensus Revenue Estimate is
Seekingalpha · 10/27 21:35
Why O'Reilly (ORLY) Might Surprise This Earnings Season
O'Reilly (ORLY) is seeing favorable earnings estimate revision activity and has a positive Zacks Earnings ESP heading into earnings season.
Zacks · 10/27 12:39
Were Hedge Funds Right About OReilly Automotive Inc (ORLY)?
In this article we are going to use hedge fund sentiment as a tool and determine whether O’Reilly Automotive Inc (NASDAQ:ORLY) is a good investment right now. We like to analyze hedge fund sentiment before conducting days of in-depth research. We do so because hedge funds and other elite investors have numerous Ivy League graduates, […]
Insider Monkey · 10/22 19:05
'Halftime Report' Traders Share Their Thoughts On Auto Stocks
On CNBC's "Fast Money Halftime Report," traders spoke about Raymond James' upgrade of Advance Auto Parts, Inc. (NYSE: AAP).
Benzinga · 10/21 20:16
O'Reilly Automotive (ORLY) Earnings Expected to Grow: What to Know Ahead of Next Week's Release
O'Reilly Automotive (ORLY) possesses the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
Zacks · 10/21 17:33
Everythings Coming Up Roses for Auto Stocks
AutoNation and Advance Auto Parts stock were on a roll early Wednesday thanks to robust earnings results and an upgrade.
Barrons.com · 10/21 14:23
Raymond James Upgrades O'Reilly Automotive On Bright Prospects
While O'Reilly Automotive Inc’s (NASDAQ: ORLY) near-term prospects for 2021 appear bright, its current stock valuation seems attractive for investors with long-term horizons as well, according to Raymond James.
Benzinga · 10/19 16:46
Raymond James Upgrades O'Reilly Automotive to Outperform, Announces $550 Price Target
Raymond James upgrades O'Reilly Automotive (NASDAQ:ORLY) from Market Perform to Outperform and announces $550 price target.
Benzinga · 10/19 11:30
This Sleepy Sector Is Going Gangbusters, and No One's Talking About It
MotleyFool.com · 10/19 08:56
Webull provides a variety of real-time ORLY stock news. You can receive the latest news about OReilly Auto through multiple platforms. This information may help you make smarter investment decisions.
About ORLY
O'Reilly Automotive, Inc. is a specialty retailer of automotive aftermarket parts, tools, supplies, equipment and accessories in the United States. The Company sells its products to both do-it-yourself (DIY) and professional service provider customers. The Company's product line includes new and remanufactured automotive hard parts, such as alternators, starters, fuel pumps, water pumps, brake system components, batteries, belts, hoses, temperature control, chassis parts, driveline parts and engine parts; maintenance items, such as oil, antifreeze, fluids, filters, wiper blades, lighting, engine additives and appearance products, and accessories, such as floor mats, seat covers and truck accessories. The Company's stores offer various services and programs to its customers, such as used oil, oil filter and battery recycling; battery diagnostic testing; electrical and module testing; check engine light code extraction; loaner tool program; custom hydraulic hoses, and machine shops.
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