Q2 Earnings Highs And Lows: O'Reilly (NASDAQ:ORLY) Vs The Rest Of The Auto Parts Retailer Stocks
Wrapping up Q2 earnings, we look at the numbers and key takeaways for the auto parts retailer stocks, including O'Reilly (NASDAQ:ORLY) and its peers.
Cars are complex machines that need maintenance and occasional repairs, and auto parts retailers cater to the professional mechanic as well as the do-it-yourself (DIY) fixer. Work on cars may entail replacing fluids, parts, or accessories, and these stores have the parts and accessories or these jobs. While e-commerce competition presents a risk, these stores have a leg up due to the combination of broad and deep selection as well as expertise provided by sales associates. Another change on the horizon could be the increasing penetration of electric vehicles.
The 5 auto parts retailer stocks we track reported a mixed Q2. As a group, revenues missed analysts’ consensus estimates by 0.7%.
Valuation multiples for many growth stocks have not yet reverted to their early 2021 highs, but the market was optimistic at the end of 2023 due to cooling inflation. This year has been a different story as mixed inflation signals have led to market volatility, and while some auto parts retailer stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 4.1% since the latest earnings results.
O'Reilly (NASDAQ:ORLY)
Serving both the DIY customer and professional mechanic, O’Reilly Automotive (NASDAQ:ORLY) is an auto parts and accessories retailer that sells everything from fuel pumps to car air fresheners to mufflers.
O'Reilly reported revenues of $4.27 billion, up 5% year on year. This print fell short of analysts’ expectations by 1.1%. Overall, it was a weaker quarter for the company with underwhelming earnings guidance for the full year and a miss of analysts’ gross margin estimates.
O'Reilly scored the fastest revenue growth but had the weakest full-year guidance update of the whole group. Unsurprisingly, the stock is up 8.1% since reporting and currently trades at $1,138.
Is now the time to buy O'Reilly? Access our full analysis of the earnings results here, it’s free.
Best Q2: Monro (NASDAQ:MNRO)
Started as a single location in Rochester, New York, Monro (NASDAQ:MNRO) provides common auto services such as brake repairs, tire replacements, and oil changes.
Monro reported revenues of $293.2 million, down 10.3% year on year, in line with analysts’ expectations. It was a very strong quarter for the company with an impressive beat of analysts’ gross margin estimates.
Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 1.9% since reporting. It currently trades at $25.55.
Is now the time to buy Monro? Access our full analysis of the earnings results here, it’s free.
Weakest Q2: Genuine Parts (NYSE:GPC)
Largely targeting the professional customer, Genuine Parts (NYSE:GPC) sells auto and industrial parts such as batteries, belts, bearings, and machine fluids.
Genuine Parts reported revenues of $5.96 billion, flat year on year, falling short of analysts’ expectations by 1.2%. It was a weak quarter for the company with underwhelming earnings guidance for the full year and a miss of analysts’ earnings estimates.
The stock is flat since the results and currently trades at $139.
Read our full analysis of Genuine Parts’s results here.
Advance Auto Parts (NYSE:AAP)
Founded in Virginia in 1932, Advance Auto Parts (NYSE:AAP) is an auto parts and accessories retailer that sells everything from carburetors to motor oil to car floor mats.
Advance Auto Parts reported revenues of $2.68 billion, flat year on year, in line with analysts’ expectations. Zooming out, it was a weak quarter for the company with underwhelming earnings guidance for the full year and a miss of analysts’ earnings estimates.
Advance Auto Parts delivered the biggest analyst estimates beat and highest full-year guidance raise among its peers. The stock is down 34.4% since reporting and currently trades at $40.64.
Read our full, actionable report on Advance Auto Parts here, it’s free.
AutoZone (NYSE:AZO)
Aiming to be a one-stop shop for the DIY customer, AutoZone (NYSE:AZO) is an auto parts and accessories retailer that sells everything from car batteries to windshield wiper fluid to brake pads.
AutoZone reported revenues of $4.24 billion, up 3.5% year on year, falling short of analysts’ expectations by 1.3%. More broadly, it was a mixed quarter for the company with a narrow beat of analysts’ gross margin estimates.
AutoZone had the weakest performance against analyst estimates among its peers. The stock is up 7.3% since reporting and currently trades at $3,141.
Read our full, actionable report on AutoZone here, it’s free.
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