What caused ORLY's earnings to rebound in Q4 2024?

O'Reilly Automotive's (ORLY) earnings rebounded in Q4 2024 due to several key factors: 1. **New Store Openings**: The company opened 47 new stores during the quarter, bringing the total store count to 6,291. This expansion into new markets and increased store footprint likely contributed to higher sales. 2. **Gross Margin Improvement**: Gross margin improved by 18 basis points to 51.6% in the third quarter, supported by strong merchandise margin performance. This improvement suggests better profitability from the company's core operations. 3. **Professional Business Strength**: O'Reilly continues to see strength in its professional business, with mid-single-digit comparable store sales growth driven by increased ticket counts. This segment's performance likely stabilized or improved in Q4, contributing to overall earnings growth. 4. **Strategic Initiatives**: The company's strategic initiatives, such as issuing $500 million of 10-year senior notes, indicate a strong financial position and ability to invest in growth opportunities. These strategic moves can positively impact earnings by optimizing capital structure and supporting long-term growth. In conclusion, O'Reilly's Q4 2024 earnings rebound can be attributed to a combination of new store openings, gross margin improvement, strength in its professional business, and strategic initiatives. These factors collectively contributed to a robust financial performance in the period.