O’REILLY AUTOMOTIVE Reports Record Revenue and Net Income for Q2 2023
August 11, 2023
🌥️Earnings Overview
On June 30, 2023, O’REILLY AUTOMOTIVE ($NASDAQ:ORLY) reported total revenue of USD 4069.0 million for the second quarter of FY 2023, a 10.8% increase compared to the same period in the previous year. Additionally, the net income experienced a year-over-year growth of 8.8%, amounting to USD 627.4 million.
Share Price
The company’s stock opened at $963.1 and closed at $965.6, up by 0.1% from its previous closing price of 964.3. The company noted that it has continued to successfully execute its long-term strategic initiatives to drive growth, with strong performance across all segments. O’REILLY AUTOMOTIVE benefited from a strong focus on customer service, expanded auto parts selection, and improved delivery options. These factors have helped the company remain competitive in the automotive repair and maintenance market. Furthermore, the company’s new store openings and acquisitions drove additional revenue and incremental margins, while its online platform helped increase digital sales by a double-digit rate.
O’REILLY AUTOMOTIVE was also able to leverage its scale to reduce costs and increase operating margins. The company’s strong performance is an indication of its continued commitment to providing customers with quality automotive solutions and industry-leading service. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for O’reilly Automotive. More…
| Total Revenues | Net Income | Net Margin |
| 15.22k | 2.26k | 14.8% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for O’reilly Automotive. More…
| Operations | Investing | Financing |
| 3.41k | -975.13 | -2.63k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for O’reilly Automotive. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 13.28k | 14.9k | -26.94 |
Key Ratios Snapshot
Some of the financial key ratios for O’reilly Automotive are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 12.4% | 12.7% | 20.2% |
| FCF Margin | ROE | ROA |
| 17.2% | -118.2% | 14.5% |
Analysis
At GoodWhale, we recently conducted an analysis of O’REILLY AUTOMOTIVE‘s wellbeing. Our Star Chart classified the company as a ‘gorilla’, indicating that it has achieved stable and high revenue or earning growth due to its strong competitive advantage. This would be of particular interest to value investors, who are looking for companies with strong fundamentals and strong performance. In addition, our analysis of O’REILLY AUTOMOTIVE gave the company a health score of 8/10 with regard to its cashflows and debt, suggesting that it is in a strong financial position and could safely ride out any crisis without the risk of bankruptcy. Finally, our analysis indicated that O’REILLY AUTOMOTIVE is strong in asset, growth, and profitability. Its weak point is in dividend, which may indicate that the company is not currently providing investors with returns through dividend payments. This would be something to consider for investors looking for consistent returns from their investments. More…
Peers
O’Reilly Automotive Inc is an American automotive parts retailer that provides automotive aftermarket parts, tools, supplies, equipment, and accessories in the United States. Headquartered in Springfield, Missouri, it has over 5,000 stores in 47 states. O’Reilly Automotive Inc operates under the O’Reilly Auto Parts, Chattersnap Auto Parts, and CSK Auto Inc names.
Its main competitors are AutoZone Inc, Five Below Inc, Advance Auto Parts Inc.
– AutoZone Inc ($NYSE:AZO)
AutoZone Inc is an American retailer of automotive parts and accessories, with over 6,000 stores across the United States. The company has a market cap of $43.79B as of 2022 and a Return on Equity of -61.62%. AutoZone is the largest retailer of automotive parts and accessories in the United States, with over 6,000 stores across the country. The company offers a wide variety of products and services for both do-it-yourselfers and professional mechanics. AutoZone is a publicly traded company on the New York Stock Exchange under the ticker symbol AZO.
– Five Below Inc ($NASDAQ:FIVE)
Five Below Inc is a publicly traded company with a market cap of 7.51B as of 2022. The company has a Return on Equity of 18.02%. Five Below Inc is a specialty retailer that offers a variety of products, including cosmetics, apparel, accessories, and more, all priced at $5 or less. The company has over 700 stores across the United States and plans to continue expanding its brick-and-mortar footprint. Five Below Inc is headquartered in Philadelphia, Pennsylvania.
– Advance Auto Parts Inc ($NYSE:AAP)
Advance Auto Parts is a leading retailer of automotive parts, accessories and maintenance items in the United States. The company operates over 5,000 stores and serves both professional and do-it-yourself customers. Advance Auto Parts has a market cap of 10.3B as of 2022 and a Return on Equity of 16.16%. The company’s strong financial performance and solid market position make it a compelling investment option for investors looking for exposure to the automotive sector.
Summary
O’REILLY AUTOMOTIVE‘s second quarter financials for FY 2023 show strong growth compared to the same period last year. Total revenue rose 10.8%, while the reported net income increased 8.8%. This demonstrates the company’s ability to generate profits and provides potential investors with confidence in O’REILLY AUTOMOTIVE’s financial performance going forward. With a strong balance sheet and steady growth, O’REILLY AUTOMOTIVE is an attractive option for investors looking for a stable long-term investment.
