O’Reilly (ORLY) down on revenue miss, worse-than-expected 2024 guidance

O'Reilly Automotive (NASDAQ: ORLY) saw its shares slide nearly 5% in after-hours trading Wednesday after the auto parts retailer issued a 2024 earnings guidance that missed analysts’ expectations.

For Q4, the company reported earnings per share (EPS) of $9.26, which was marginally above the predicted $9.15. Meanwhile, its revenue of $3.83 billion fell short of the anticipated $3.86 billion.

The report showed a year-over-year increase in comparable sales by 3.4%, although this was below the previous year's 9% growth and slightly under the 3.74% projected by analysts. On a brighter note, O'Reilly's gross profit margin improved to 51.3% from 50.9% a year earlier, edging above the forecast of 51.2%.

Looking ahead to fiscal year 2024, O'Reilly Automotive is projecting an EPS in the range of $41.05 to $41.55, missing the consensus estimate of $42.81. For revenue, O'Reilly anticipates between $16.8 billion and $17.1 billion, which is broadly in line with the anticipated $16.79 billion.

For comparable sales growth, the retailer expects growth ranging from 3% to 5%, compared to analysts’ expectations of 3.8%.

In terms of gross profit margin, O'Reilly's outlook is between 51% and 51.5%, which aligns closely with the estimated 51.3%.

"In total, our comparable store sales performance exceeded our expectations for the quarter, driven by Team O'Reilly's relentless focus on providing the highest levels of service in the industry,” the company said in a statement.

"Our Team once again generated double-digit professional comparable store sales growth, while also successfully navigating the anticipated year-over-year pressure we experienced on the DIY side of our business, resulting from the extremely strong, weather-driven sales we produced in the fourth quarter of 2022."

By Vahid Karaahmetovic

You May Also Be Interested In

• FedEx falls 4% as CY2026 profit forecast misses expectations despite Q4 beat
• Cerebras Q1 EPS miss sends shares down 9% after-hours
• Cal-Maine Foods adds two independent directors, expanding board to ten