O'Reilly Automotive Inc.
) to beat expectations when it reports second-quarter 2014 results
on Jul 23, 2014. Last quarter, it posted a surprise of +1.90%. Let
us see how things are shaping up for this announcement.
Why a Likely Positive Surprise?
Our proven model shows that O'Reilly Automotive is likely to beat
earnings this quarter because it has the right combination of two
Positive Zacks ESP:
, which represents the difference between the Most Accurate
estimate and the Zacks Consensus Estimate, is poised at +0.54%. A
favorable Zacks ESP serves as a meaningful and leading indicator of
a likely positive earnings surprise.
Zacks Rank #3 (Hold):
Note that stocks with Zacks Ranks of #1, 2 and 3 have a
significantly higher chance of beating earnings. However, the
Sell-rated stocks (#4 and 5) should never be considered going into
an earnings announcement.
The combination of O'Reilly Automotive's Zacks Rank #3 and +0.54%
ESP makes us confident of an earnings beat.
What is Driving the Better-Than-Expected Earnings?
O'Reilly enjoys a competitive edge owing to its dual market
strategy. Also, the company is continuously benefiting from a
strong distribution network. The company aggressively pursues new
store openings for greater penetration in existing markets and
expansion into new, contiguous markets. For full-year 2014,
O'Reilly raised the earnings per share guidance to $6.82-$6.92,
based on good operating performance and announcement of an
additional share repurchase program.
The positive trend has been seen in the trailing four quarters,
over which O'Reilly posted an average surprise of 4.11%. This
favorable development can be attributed to O'Reilly's efforts to
increase revenues and expand business.
Other Stocks to Consider
Here are some other companies you may want to consider as our model
shows that they have the right combination of elements to post an
earnings beat this quarter:
), which has an Earnings ESP of +2.08% and a Zacks Rank #1 (Strong
Buy), will be reporting its second-quarter 2014 numbers on Jul 24,
) has an Earnings ESP of +6.67% and a Zacks Rank #1. The company
will be releasing its second-quarter financial results on Jul 31,
Dana Holding Corp.
) has an earnings ESP of +5.77% and a Zacks Rank #2 (Buy). The
company will release its second-quarter financial results on Jul
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