What is the market's earnings forecast for O'Reilly Automotive next quarter?

What were the key takeaways from O'Reilly Automotive’s earnings call?

Did O'Reilly Automotive beat or miss consensus estimates last quarter?

What is O'Reilly Automotive's latest dividend and current dividend yield?

What factors drove the changes in O'Reilly Automotive's revenue and profit?

What were the key takeaways from O'Reilly Automotive's earnings call?

What does O'Reilly Automotive do and what are its main business segments?

What is O'Reilly Automotive's gross profit margin?

- **Revenue Growth**: 6.4% YoY to $17.8B, with 5.6% Q4 comparable store sales growth.
- **Profitability**: 2025 EPS up 10% to $2.97; 2026 guidance for $3.10-3.20 EPS.
- **Expansion Plans**: 225-235 new stores in 2026, including first greenfield location in Canada.
- **Cost Challenges**: Rising healthcare and self-insurance costs expected to pressure SG&A in 2026.
- **Gross Margin**: 51.6% in 2025, targeting 51.5-52.0% in 2026 with Mexico mix benefits.

**【CEO Summary Section】**
- Comparable store sales grew 5.6% in Q4 and 4.7% for the full year 2025, driven by strong performance in the professional business segment.
- Total sales reached $17.8 billion, up 6.4% year-over-year, with a 50%+ increase in sales volume since 2020.
- Gross margin improved to 51.6% for the year, up 39 basis points, supported by cost management and pricing discipline.
- 2026 guidance includes 3-5% comparable store sales growth, with a focus on new store openings (225-235 net new stores) and distribution center expansion in Virginia.
- Operating profit of $3.5 billion for 2025, up 6.4%, with operating margin flat at 19.5%.
- Diluted EPS grew 10% to $2.97 for the year, with Q4 EPS of $0.71 (13% YoY increase).
- Challenges included rising healthcare and self-insurance costs, which pressured SG&A expenses.

**【CFO Financial Commentary】**
- 2025 GAAP net income: $420 million; Non-GAAP EPS: $1.08 (exceeded expectations).
- 2026 revenue guidance: $18.7-19.0 billion.
- Gross margin guidance: 51.5-52.0%, reflecting continued cost management and mix benefits from Mexico expansion.
- Free cash flow guidance: $1.8-2.1 billion, driven by operating income growth and higher CapEx ($1.3-1.4 billion).
- Effective tax rate guidance: 22.6%, with $0.04 headwind to EPS from tax rate increase.
- Share repurchase program remains active, with $2.1 billion spent in 2025.

**【Q&A Highlights】**
- **Cost Pressures**: Elevated healthcare and self-insurance costs expected to persist in 2026, particularly in first half due to tough comparisons. Management expects stabilization over time but no immediate relief.
- **Virginia DC Expansion**: New distribution center in Stafford, VA will support growth in Mid-Atlantic corridor. 2026 store openings will be evenly spread across markets, with focus on high-density urban areas.
- **Tariff Impact**: Industry pricing environment expected to remain rational. Benefits of 2025 tariff cost pass-through will decline in 2026 as comparisons ease.
- **DIY Consumer Behavior**: Winter weather drove maintenance-related sales, but larger ticket discretionary DIY transactions remain cautious. Professional business continues to outperform DIY.
- **Mexico Growth**: Transition from jobber model to stores driving gross margin expansion, but also increasing SG&A as non-store sales decline.

O'Reilly Automotive, Inc. (ORLY) Q4 2025 Earnings Call Transcript

- **Q3 Growth**: 5.6% comp sales driven by 10% Pro growth, updated FY25 guidance to 4-5%. 
- **Tariff Mitigation**: Tariff impacts largely absorbed; Q4 same SKU inflation expected. 
- **Expansion Acceleration**: 225-235 new stores planned for 2026. 
- **Financial Strength**: Gross margin stable, EPS up 9% YoY, $420M share buybacks in Q3.

**【CEO Summary Section】**
- Q3 2025 comparable store sales increased 5.6%, driven by a 10% rise in the Professional business and a low single-digit DIY comp. 
- Updated full-year guidance raised to 4-5% from 3-4.5%, reflecting tariff impacts and consumer cautiousness. 
- Gross margin expected to remain stable at 51.2-51.7%, with EPS guidance of $2.90-3.00.

**【CFO Financial Commentary】**
- Q3 gross margin of 51.9% (up 27 bps YoY) offset Professional customer mix headwinds. 
- SG&A per store growth of 4% due to sales leverage and medical/casualty cost inflation. 
- Free cash flow guidance reduced to $1.5-1.8B (from $1.6-1.9B) due to accelerated tax credit payments. 
- 2025 store openings on track for 200-210, with 225-235 targeted for 2026.

**【Q&A Key Highlights】**
- **Tariff Impact**: Most tariff-driven cost increases absorbed in Q3; mid-single-digit same SKU inflation expected in Q4. 
- **DIY Elasticity**: Moderate deferral of large-ticket jobs observed, but maintenance categories remain strong. 
- **Supplier Risk**: 3% of COGS tied to First Brands; diversified sourcing mitigates risk. 
- **SG&A Management**: Teams balancing expense control with service quality, targeting 3.5-4% per store growth.

O'Reilly Automotive, Inc. (ORLY) Q3 2025 Earnings Call Transcript

- **Revenue Outperformance**: 4.1% Q2 comp growth driven by 7%+ professional segment expansion and average ticket growth, with updated full-year guidance of 3-4.5%.
- **Tariff Management**: Early-stage benefits from industry pricing adjustments, but cautious on consumer reaction to H2 inflation.
- **Profitability Strength**: 51.4% gross margin (vs. 50.7% prior) and $0.78 EPS reflect strong cost control and operational execution.
- **Strategic Expansion**: New DCs in TX and VA to unlock growth in high-potential markets, supporting long-term share gains.
- **Share Buybacks**: $617M in Q2 repurchases highlight capital return focus, with updated EPS guidance of $2.85-2.95.

**【Management Opening Remarks】**
- CFO Jeremy Fletcher introduced the call, emphasizing forward-looking statements and the company's financial framework. He highlighted the importance of maintaining operational excellence amid macroeconomic challenges.

**【CEO Summary Section】**
- **Revenue Growth**: Comparable store sales increased 4.1% Q2, driven by 7%+ growth in the professional segment and low single-digit DIY comp. Average ticket size expanded due to complexity in vehicle repairs and modest same-SKU inflation (~1.5%).
- **Tariff Impact**: Management noted early-stage benefits from industry-wide pricing adjustments, but cautioned against significant net tariff-driven inflation in H2.
- **Consumer Behavior**: Resilient demand in maintenance categories (oil, filters) offset softness in discretionary DIY products. Weather-neutral Q2 results with slight June pressure in hot-weather categories.
- **Guidance Update**: Full-year comp guidance raised to 3-4.5% (vs. 2-4% prior), reflecting strong H1 trends and potential pricing benefits. EPS guidance adjusted to $2.85-2.95 (split-adjusted).

**【CFO Financial Commentary】**
- **Earnings Performance**: Q2 EPS of $0.78 (11% YoY growth). Full-year EPS guidance of $2.85-2.95 reflects share repurchases but excludes additional buybacks.
- **Gross Margin**: 51.4% Q2 gross margin (+67bps YoY), benefiting from supply chain management and tariff timing dynamics. Full-year guidance maintained at 51.2-51.7%.
- **SG&A**: Q2 SG&A per store growth of 4.5% due to sales leverage and cost inflation (medical/casualty insurance). Full-year guidance raised to 3-3.5% (from 2.5-3.5%).
- **Balance Sheet**: Free cash flow of $904M YTD (down vs. prior year due to tax credit timing). Debt-to-EBITDAR ratio of 2.06x, below 2.5x target. $617M in share buybacks Q2.
- **Inventory Management**: Inventory per store up 9% YoY, supporting broad availability. AP to inventory ratio expected to moderate to 125% by year-end.

**【Q&A Key Highlights】**
- **Tariff Dynamics**: Industry rationality in pricing adjustments, with short-term timing benefits but cautious outlook on consumer price sensitivity.
- **SG&A Pressure**: Medical/casualty insurance costs and inflation driving incremental expenses, but investments in customer service viewed as growth enablers.
- **Distribution Expansion**: New Fort Worth (TX) and Stafford (VA) DCs to enhance service in high-growth regions, with Stafford expected to begin operations late 2025.
- **Consumer Sentiment**: Healthy employment and wage growth supporting auto care spending, but cautious DIY consumers in discretionary categories.
- **Share Repurchases**: Buyback program continues as a capital return priority, with $617M executed Q2.


O'Reilly Automotive, Inc. (ORLY) Q2 2025 Earnings Call Transcript

- **Revenue Resilience**: Q1 comp sales up 3.6%, driven by strong March performance amid macro challenges.
- **Gross Margin Stability**: 51.3% gross margin, no material tariff impact; full-year guidance unchanged.
- **EPS Uptick**: Diluted EPS guidance raised to $42.90-43.40, reflecting Q1 outperformance and tax rate benefits.
- **Stock Split**: 15:1 split to enhance team member equity participation, signaling long-term confidence.
- **Tariff Mitigation**: 25% China-sourced products, strategic sourcing diversification underway; no immediate price pass-through.

**【CEO Opening Remarks】**
- Q1 2025 comparable store sales grew 3.6%, driven by mid-single-digit professional business comp and low-single-digit DIY comp. March was the strongest month, benefiting from favorable weather and tax refunds.
- Maintaining 2025 full-year comp guidance of 2-4% despite macroeconomic uncertainties. Tariffs' impact on same-SKU inflation remains minimal (under 0.5%).
- Announced 15:1 stock split to enhance team member stock ownership, reflecting confidence in long-term growth.

**【CFO Financial Highlights】**
- Q1 gross margin 51.3%, stable year-over-year, with no material tariff impact. Full-year gross margin guidance maintained at 51.2-51.7%.
- SG&A per store growth 4.1%, above expectations due to payroll costs, medical expenses, and winter maintenance. Full-year SG&A growth expected at 2-2.5%.
- Free cash flow $455M, up 16% YoY. Capital expenditures $287M, with full-year capex guidance $1.2-1.3B.

**【Q&A Key Takeaways】**
- **Tariff Strategy**: 25% of products sourced from China, reducing dependency. Teams negotiating with suppliers to mitigate costs; no immediate market share shift expected.
- **SG&A Management**: Q1 pressure temporary; 2025 guidance of 2-2.5% growth maintained. Focus on variable costs tied to sales performance.
- **Inventory & Expansion**: Inventory per store up 4.3% YoY, targeting 5% growth. 38 net new stores opened Q1, with strong performance driven by store-level execution.
- **Competitive Position**: Premium service model retains pricing power; no plans to lower prices for market share despite tariffs. Independent competitors may face challenges, creating M&A opportunities.


O'Reilly Automotive (ORLY)-24 Apr 25-2025 Q1 Earnings call transcript

- **2024 Results**: 2.9% comparable store sales growth, 5.7% EPS increase, despite $0.46 EPS headwind from claims adjustment.
- **2025 Guidance**: 2%-4% sales growth, 5.4% EPS growth, $1.2B-$1.3B capex for 200-210 new stores.
- **Gross Margin Expansion**: 25bps target for 2025, driven by cost reductions and distribution efficiency.
- **Tariff Risk Management**: 25% China, 19% Mexico sourcing; industry collaboration to mitigate tariff impacts.
- **Automation Investment**: New DCs with goods-to-person tech enhance efficiency without major labor savings.


**【CEO Opening Remarks】**
- **2024 Yearly Performance**: Comparable store sales grew 2.9%, with EPS up 5.7%, marking the 32nd consecutive year of growth. Despite a $0.46 EPS headwind from a $35M auto claims liability adjustment, the company delivered record earnings.
- **Q4 Sales Highlights**: Q4 comparable store sales rose 4.4%, driven by balanced growth in professional (mid-single-digit) and DIY (3.1%) segments. Winter weather benefits offset softness in discretionary categories.
- **2025 Guidance**: Set 2025 comparable store sales growth at 2%-4%, reflecting cautious optimism amid macroeconomic uncertainties. Professional business growth is expected to outpace DIY due to industry dynamics and market share gains.

**【CFO Financial Insights】**
- **Q4 Financials**: GAAP net income of $420M, with EPS of $4.33 (excluding one-time charges). Gross margin remained stable at 51.3%, while SG&A expenses rose 68bps to 33.3% due to the auto claims adjustment.
- **2025 Outlook**: Projected EPS of $42.60-$43.10, up 5.4% mid-point, driven by lapping the 2024 claims charge. Free cash flow expected at $1.6B-$1.9B, supporting $1.2B-$1.3B in capex for store and distribution expansion.
- **Tax Rate**: 2025 effective tax rate guided at 22.6%, up from 21.6% in 2024, reflecting deferred tax credit timing.

**【President (Brent Kirby) Operational Update】**
- **Gross Margin Management**: 2025 gross margin target of 51.2%-51.7%, up 25bps, driven by acquisition cost reductions and distribution efficiencies. Excludes tariff impacts, which remain uncertain.
- **Supply Chain Expansion**: 2025 capex includes $1.2B-$1.3B for 200-210 new stores (60% owned, 40% leased) and distribution centers (e.g., Stafford, VA). Inventory per store to grow 5%, supporting parts availability.
- **SG&A Efficiency**: 2025 SG&A per store growth of 2%-2.5%, excluding the 2024 claims charge. Operating margin mid-point held flat at 19.5%, reflecting cost management and reinvestment in growth initiatives.

**【Q&A Key Takeaways】**
- **Tariff Exposure**: ~25% of COGS sourced from China, 19% from Mexico. Suppliers may pass through tariffs, but industry rationality and diversification mitigate risks.
- **Regional Performance**: No significant regional disruption noted; competitive closures in the West may offer limited, selective opportunities.
- **Automation Benefits**: New distribution centers (e.g., Atlanta, Stafford) feature goods-to-person automation, improving efficiency and accuracy without major labor savings.
- **Energy Costs**: Gas/diesel price sensitivity is low, with minimal impact on SG&A or demand trends.
- **Insurance Costs**: Rising auto claims costs could pressure margins, but safety initiatives aim to mitigate future losses.


O'Reilly Automotive, Inc. (ORLY) Q4 2024 Earnings Call Transcript

O'Reilly Automotive (ORLY)-24 Oct 24-2024 Q3 Earnings call transcript

O`Reilly Automotive (ORLY)-25 Jul 24-2024 Q2 Earnings call transcript

O`Reilly Automotive (ORLY)-25 Apr 24-2024 Q1 Earnings call transcript

O`Reilly Automotive (ORLY)-8 Feb 24-2023 Q4 Earnings call transcript

O`Reilly Automotive (ORLY)-26 Oct 23-2023 Q3 Earnings call transcript

O`Reilly Automotive (ORLY)-27 Apr 23-2023 Q1 Earnings call transcript

O`Reilly Automotive (ORLY)-9 Feb 23-2022 Q4 Earnings call transcript

O`Reilly Automotive (ORLY)-27 Oct 22-2022 Q3 Earnings call transcript

O`Reilly Automotive (ORLY)-28 Jul 22-2022 Q2 Earnings call transcript

O`Reilly Automotive (ORLY)-28 Apr 22-2022 Q1 Earnings call transcript

O`Reilly Automotive (ORLY)-10 Feb 22-2021 Q4 Earnings call transcript

O`Reilly Automotive (ORLY)-28 Oct 21-2021 Q3 Earnings call transcript

O`Reilly Automotive (ORLY)-29 Jul 21-2021 Q2 Earnings call transcript

O`Reilly Automotive (ORLY)-29 Apr 21-2021 Q1 Earnings call transcript

O`Reilly Automotive (ORLY)-29 Oct 20-2020 Q3 Earnings call transcript

O`Reilly Automotive (ORLY)-30 Jul 20-2020 Q2 Earnings call transcript

O`Reilly Automotive (ORLY)-23 Apr 20-2020 Q1 Earnings call transcript

O`Reilly Automotive (ORLY)-6 Feb 20-2019 Q4 Earnings call transcript

O`Reilly Automotive (ORLY)-25 Oct 19-2019 Q3 Earnings call transcript

O`Reilly Automotive (ORLY)-25 Jul 19-2019 Q2 Earnings call transcript

O`Reilly Automotive (ORLY)-25 Apr 19-2019 Q1 Earnings call transcript

O`Reilly Automotive (ORLY)-7 Feb 19-2018 Q4 Earnings call transcript

O`Reilly Automotive (ORLY)-25 Oct 18-2018 Q3 Earnings call transcript

O`Reilly Automotive (ORLY)-26 Jul 18-2018 Q2 Earnings call transcript

O`Reilly Automotive (ORLY)-26 Apr 18-2018 Q1 Earnings call transcript

O`Reilly Automotive (ORLY)-8 Feb 18-2017 Q4 Earnings call transcript

O`Reilly Automotive (ORLY)-26 Oct 17-2017 Q3 Earnings call transcript

ORLY

ORLY fundamentals

Earnings Call

You can ask Aime