O'Reilly Automotive Inc.
) hit a new 52-week high of $116.14 on Jul 5, which is above its
previous level of $115.85 on Jul 2, and closed at $115.75 on the
same date. The closing price represented a solid one-year return
of 33.7% and year-to-date return of 28.8%.
CARMAX GP (CC) (KMX): Free Stock Analysis
LITHIA MOTORS (LAD): Free Stock Analysis
O REILLY AUTO (ORLY): Free Stock Analysis
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O'Reilly Automotive, headquartered in Springfield, Mo., is the
third largest specialty retailer of automotive aftermarket parts,
tools, supplies, equipment, and accessories in the U.S., selling
products to both Do-it-Yourself (DIY) customers and Do-it-for-Me
(DIFM) or professional installers. It has a market cap of $12.8
billion. Average volume of shares traded over the last three
months stood at approximately 719.3K.
Shares of the company started escalating following its improved
first-quarter results and promising guidance announced on Apr 24
as well as improving fundamentals in the automotive market.
ORLY posted a 19.3% increase in earnings to $1.36 per share in
the first quarter of 2013 compared with $1.14 in the year-ago
quarter, exceeding the Zacks Consensus Estimate by a penny. Net
income improved 5% to $154 million (9.7% of sales) from $147
million (9.6%) in the first quarter of 2012.
Revenues in the quarter scaled up 4% to $1.59 billion from $1.53
billion in the same period a year ago. Comparable store sales
increased 1.9% compared with 6.1% in the first quarter of 2012
(both adjusted for the impact of Leap Day in 2012-quarter).
O'Reilly Automotive has projected earnings per share in the range
of $1.46-$1.50 and consolidated comparable store sales to
increase in a band of 4% to 6% for the second quarter of 2013.
For full year 2013, the company raised its earnings per share
guidance to the range of $5.64 to $5.74 from the earlier range of
$5.57 to $5.67. However, it reiterated its guidance of
consolidated comparable store sales increase of 3% to 5% for the
ORLY also reiterated revenue guidance of $6.6 billion to $6.7
billion, upgraded gross margin guidance to 50.0% to 50.4% from
49.9% to 50.3%, and reiterated operating margin guidance between
15.8% and 16.2% for the year.
Further, U.S. automotive industry continues to improve driven by
continued macroeconomic recovery, aging vehicles on the U.S.
roads and strong demand for commercial vehicles from businesses.
Vehicle sales in June reached its highest level in nearly half a
decade, indicating increased economic activities. Seasonally
adjusted annual sales rate in the month was 15.9 million units,
the best since Nov 2007.
Currently, shares of O'Reilly Automotive retain a Zacks Rank #3
(Hold). Some other stocks that are also performing well in the
broader industry where ORLY operates include
Lithia Motors Inc.
Sonic Automotive Inc.
). All of them carry a Zacks Rank #2 (Buy).