The 10-second takeaway
For the quarter ended Dec. 31 (Q4), O'Reilly Automotive met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded and GAAP earnings per share expanded significantly.
Margins improved across the board.
O'Reilly Automotive recorded revenue of $1.39 billion. The 20 analysts polled by S&P Capital IQ expected a top line of $1.41 billion on the same basis. GAAP reported sales were 6.2% higher than the prior-year quarter's $1.31 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.93. The one earnings estimate compiled by S&P Capital IQ forecast $0.86 per share on the same basis. GAAP EPS of $0.94 for Q4 were 29% higher than the prior-year quarter's $0.73 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 49.9%, 130 basis points better than the prior-year quarter. Operating margin was 14.7%, 220 basis points better than the prior-year quarter. Net margin was 8.8%, 70 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $1.49 billion. On the bottom line, the average EPS estimate is $1.03.
Next year's average estimate for revenue is $6.23 billion. The average EPS estimate is $4.50.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 264 members out of 279 rating the stock outperform, and 15 members rating it underperform. Among 90 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 84 give O'Reilly Automotive a green thumbs-up, and six give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on O'Reilly Automotive is outperform, with an average price target of $81.00.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.