These Analysts Revise Their Forecasts On O'Reilly Automotive After Q2 Results

O’Reilly Automotive, Inc. ORLY reported worse-than-expected second-quarter financial results and issued FY24 guidance below estimates, after the closing bell on Wednesday.

O’Reilly Automotive reported quarterly earnings of $10.55 per share which missed the analyst consensus estimate of $11.09 per share. The company reported quarterly sales of $4.272 billion which missed the analyst consensus estimate of $4.318 billion, according to data from Benzinga Pro.

Brad Beckham, O’Reilly’s CEO, commented, “I would like to thank all of Team O’Reilly for their tremendous hard work and unwavering commitment to providing excellent customer service and taking care of our customers every day. Our comparable store sales results were below our expectations for the second quarter, as the soft demand environment we experienced at the beginning of the quarter persisted through May. Sales trends improved in June, in line with our expectations, aided by strong performance in summer weather-related categories in many of our markets. Against this challenging backdrop, our Team generated a second quarter comparable store sales increase of 2.3%, on top of a 9.0% increase last year, driven by solid, mid-single digit growth in our professional business.”

O’Reilly Automotive said it sees FY24 earnings of $40.75 to $41.25 per share, versus estimates of $41.86 per share. The company expects total revenue of $16.6 billion to $16.9 billion versus estimates of $17.85 billion.

O’Reilly Automotive shares gained 2.1% to trade at $1,116.08 on Friday.

These analysts made changes to their price targets on O’Reilly Automotive following the announcement.

• Truist Securities analyst Scot Ciccarelli maintained O’Reilly Automotive with a Buy rating and raised the price target from $1,143 to $1,204.
• RBC Capital analyst Steven Shemesh maintained the stock with an Outperform rating and lowered the price target from $1,124 to $1,115.
• DA Davidson analyst Michael Baker maintained the stock with a Buy rating and raised the price target from $1,200 to $1,275.

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