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Investing.com - Evercore ISI has reiterated an Outperform rating and $97.00 price target on O’Reilly Automotive (NASDAQ:ORLY) ahead of the company’s second-quarter earnings report scheduled for Wednesday, July 23. According to InvestingPro data, analyst targets range from $60 to $113, with the stock currently trading above its Fair Value estimate.
O’Reilly stock has risen 17% year-to-date, outperforming both the S&P 500’s 7% gain and the flat performance of the S&P Retail Index. In the past month, ORLY shares have increased 3%, trailing the broader market by 100 basis points amid a challenging consumer environment and potential weather impacts during the quarter.
Evercore ISI expects O’Reilly’s second-quarter results to align with consensus estimates, projecting comparable sales growth of 3.5% to 4% and earnings of approximately 78 cents per share. With InvestingPro showing a strong financial health score of 2.71 (rated as "GOOD") and revenue growth of 4.9% in the last twelve months, the research firm anticipates the company will raise its full-year guidance as comparable sales continue to perform near the top end of initial expectations.
The company’s original fiscal year 2025 guidance called for 2% to 4% comparable sales growth, but Evercore ISI believes O’Reilly may increase this range to 3% to 5% following second-quarter performance likely mirroring first-quarter results. With a robust gross profit margin of 51.23% and strong return on assets of 16.12%, the firm notes that inflation uptick is a primary focus, with input cost inflation beginning to increase due to tariff pass-through impacts.
Evercore ISI expects management will likely guide full-year earnings per share in the range of $2.85 to $2.95, compared to current Street estimates of $2.93. The company maintains a moderate debt level with a total debt to capital ratio of 0.09, noting that while some consumer trade-down or repair deferral is possible, higher vehicle prices should keep consumers purchasing auto parts for essential repairs. For deeper insights into O’Reilly’s financial health and growth prospects, investors can access the comprehensive Pro Research Report available on InvestingPro.
In other recent news, O’Reilly Automotive has been the focus of multiple analyst updates following its first-quarter financial results and a 15-for-1 stock split. CFRA has lowered its price target for O’Reilly to $100.00, reflecting the stock split, while maintaining a Buy rating. DA Davidson also adjusted its price target to $107.00 for the same reason, without altering its financial assumptions, and reiterated a Buy rating. Meanwhile, Mizuho (NYSE:MFG) Securities increased its price target to $1,445.00, citing consistent demand trends, particularly in the professional segment, and noted potential upside despite cost pressures.
Truist Securities raised its price target to $1,539.00, acknowledging a modest beat in comparable store sales and a slight increase in earnings per share guidance, while maintaining a Buy rating. RBC Capital reaffirmed its Outperform rating with a $98.00 price target, expecting second-quarter sales growth of 3.9%, which is above consensus estimates. Analysts have noted that O’Reilly’s sales momentum and easing of selling, general, and administrative expenses present positive signals for the company. These developments come as O’Reilly navigates changing market dynamics, including tariff impacts and increased consumer focus on vehicle maintenance and repair.
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