O'Reilly Automotive Beats on Both Top and Bottom Lines

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O'Reilly Automotive (NAS: ORLY) reported earnings on May 10. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q1), O'Reilly Automotive beat expectations on revenues and earnings per share.

Compared to the prior-year quarter, revenue grew and GAAP earnings per share grew significantly.


Margins grew across the board.

Revenue details
O'Reilly Automotive logged revenue of $1.53 billion. The 18 analysts polled by S&P Capital IQ looked for a top line of $1.49 billion on the same basis. GAAP reported sales were 11% higher than the prior-year quarter's $1.38 billion.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $1.14. The 21 earnings estimates compiled by S&P Capital IQ predicted $1.04 per share. GAAP EPS of $1.14 for Q1 were 58% higher than the prior-year quarter's $0.72 per share.

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Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 49.8%, 140 basis points better than the prior-year quarter. Operating margin was 16.2%, 200 basis points better than the prior-year quarter. Net margin was 9.6%, 220 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $1.59 billion. On the bottom line, the average EPS estimate is $1.19.

Next year's average estimate for revenue is $6.26 billion. The average EPS estimate is $4.67.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 269 members out of 287 rating the stock outperform, and 18 members rating it underperform. Among 96 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 90 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 $88.71.

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At the time this article was published 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 ofMotley 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.

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