Earnings Preview: O'Reilly Automotive

O'Reilly Automotive (ORLY) is expected to report Q2 earnings Tuesday, July 22, after market close with a conference call scheduled for Wednesday, July 23 at 10:00 a.m. ET.

Guidance

Analysts are looking for a profit of 48c on revenue of $701.70M. The consensus range is 46c to 50c for EPS, and $684M to $711M for revenue, according to First Call. For Q1, O'Reilly reported Q1 EPS 40c vs. consensus of 43c and reported Q1 revenue $646M vs. consensus of $665.72. Possible positive drivers for this quarter are accretion from the CSK Auto acquisition. Negative drivers for this quarter include a challenging economic environment which is not conducive to customers spending on vehicle maintenance.

Analyst Views

On July 21, Kevin Dann predicted the company will report Q2 EPS of 50c, compared with the consensus of 48c. The firm expects O'Reilly to report improved comps versus Q1 and lower SG&A, and it notes that the recent decline in oil prices may help the company to report positive Q3 comps. The firm believes this may be a good time to buy the company's stock.