Nucor earnings beat by $0.08, revenue fell short of estimates
Investing.com - RBC Capital has reiterated an Outperform rating on O’Reilly Automotive (NASDAQ:ORLY) with a price target of $98.00, according to a recent analyst note. According to InvestingPro data, the stock currently trades at a P/E ratio of 32.7, reflecting its premium valuation status.
The firm expects O’Reilly to report second-quarter comparable sales growth of 3.9%, slightly above the consensus estimate of 3.8%, with earnings per share of $0.78, in line with consensus expectations. The company has maintained strong financial performance, with revenue growing 4.9% over the last twelve months and maintaining a healthy gross profit margin of 51.2%.
RBC Capital notes that transaction data indicates improving sales trends throughout the quarter, likely driven by continued professional customer momentum and tariff-led inflation beginning to take hold in the market. With InvestingPro showing a robust financial health score of "GOOD" and 10+ additional exclusive insights available, investors can gain deeper understanding of O’Reilly’s market position.
The analyst projects approximately 40 basis points of gross margin expansion due to easy year-over-year comparisons, partially offset by a 3% increase in selling, general, and administrative expenses per store.
While RBC Capital does not anticipate material changes to O’Reilly’s guidance due to uncertainty around tariffs, the firm views sales momentum combined with easing SG&A pressure as net positives for the stock, supporting its $98 price target based on approximately 30 times its 2026 EPS estimate of $3.26.
In other recent news, O’Reilly Automotive reported its first-quarter 2025 earnings, missing both earnings per share (EPS) and revenue forecasts. The company’s EPS was $9.35, below the expected $9.87, while revenue reached $4.14 billion, falling short of the $4.18 billion forecast. Despite these results, O’Reilly maintains its full-year revenue guidance between $17.4 billion and $17.7 billion. Analyst firms have reacted to these developments, with DA Davidson maintaining a Buy rating on O’Reilly Automotive, adjusting its price target to $107.00 following a 15-to-1 stock split. Meanwhile, Mizuho (NYSE:MFG) Securities raised its price target to $1,445.00, citing consistent demand trends, especially in the professional segment. Truist Securities also increased its price target to $1,539, maintaining a Buy rating, and highlighted the potential benefits from tariffs and increased consumer focus on maintenance and repair activities. O’Reilly’s first-quarter performance showed a modest beat on comparable store sales, with a 3.6% increase, slightly above expectations. The company opened 38 new stores during the quarter and plans to continue expanding.
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