O'Reilly Cruises the Earnings Highway: Fool by Numbers (ORLY)

O'Reilly Cruises the Earnings Highway: Fool by Numbers

By Motley Fool Contributors | More Articles
April 25, 2007 | Comments (0)

On April 24, O'Reilly Automotive (Nasdaq: ORLY ) released first-quarter earnings for the period ended March 31.

Same-store sales accelerated 6.8%, helping to drive revenue up 14.3% from the first quarter of 2006.
Management fine-tuned gross margins mainly through investment in technology, improved product mix, and distribution efficiencies.
To work toward its target of opening 190 to 195 new stores in 2007, the company opened 47 new stores in the first quarter.
The Motley Fool CAPS community gives O'Reilly four stars. Meanwhile, the competition can't quite keep up; Advance Auto Parts (NYSE: AAP ) ranks one star lower, while AutoZone (NYSE: AZO ) only gets two stars.

(Figures in millions, except per-share data.)

Income Statement Highlights

	Q1 2007	Q1 2006	Change
Sales	$613.1	$536.5	14.3%
Net Profit	$48.4	$40.6	19.3%
EPS	$0.42	$0.35	20%
Diluted Shares	115.5	114.6	0.8%

Get back to basics with the income statement.

Margin Checkup

Q1 2007	Q1 2006	Change*
43.9%	43.5%	0.4
12.6%	12.1%	0.5
7.9%	7.6%	0.3

*Expressed in percentage points.

Margins are the earnings engine.

Balance Sheet Highlights

Assets	Q1 2007	Q1 2006	Change
Cash + ST Invest.	$90.2	$55.3	63.2%
Accounts Rec.	$134.1	$134.9	(0.6%)
Inventory	$825.2	$753.8	9.5%

Liabilities	Q1 2007	Q1 2006	Change
Accounts Payable	$372.1	$312.5	19.1%
Long-Term Debt	$100.4	$25.4	294.7%

The balance sheet reflects the company's health.

Cash Flow Information

O'Reilly's managers must have been too busy tuning up their own cars for spring. They forgot to include a cash flow statement.

Free cash flow is a Fool's best friend.

Related Foolishness:

AutoZone is an Inside Value stock. Check out any of our newsletters free for 30 days.

Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so check Fool.com for more of our in-depth discussion of what the numbers mean. This data has been provided by Netscribes. To provide feedback on this article, please click on the "feedback" button below.

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