O'Reilly Q2 Earnings Beat Estimates, '25 Revenue Outlook Raised

O’Reilly Automotive, Inc. ORLY reported second-quarter 2025 adjusted earnings per share (EPS) of 78 cents, which marginally beat the Zacks Consensus Estimate of 77 cents. The bottom line also increased from 70 cents in the prior-year quarter.

The automotive parts retailer registered quarterly revenues of $4,525 million, missing the Zacks Consensus Estimate of $4,532 million. The top line, however, increased 6% year over year.

During the quarter, comparable store sales grew 4.1% and the company opened 67 stores in the United States and Mexico. The total store count was 6,483 as of June 30, 2025.

O'Reilly Automotive, Inc. Price, Consensus and EPS Surprise

 

O'Reilly Automotive, Inc. price-consensus-eps-surprise-chart | O'Reilly Automotive, Inc. Quote

ORLY’s Q2 Financials, Share Repurchase & Costs

In the reported quarter, selling, general and administrative expenses rose 8% year over year to $1.41 billion. Operating income increased 6% year over year to $914 million. Net income was $668.6 million, up from $622.8 million in the year-ago quarter.

During the reported quarter, O’Reilly repurchased 6.8 million shares for $617 million at an average price of $90.71 per share. From the end of the second quarter until July 23, 2025, the company repurchased an additional 1.7 million shares of common stock for a total investment of $160 million at an average price of $91.45 per share. As of July 23, ORLY had nearly $1.16 billion remaining under the current share repurchase authorization.

As of June 30, 2025, it had cash and cash equivalents of $198.6 million, an increase from $145 million recorded as of June 30, 2024. Its long-term debt was $5.82 billion, up from $5.4 billion as of June 30, 2024.

During the reported quarter, O’Reilly generated $1.51 billion in cash from operating activities compared with the year-ago period’s $1.65 billion. Capital expenditures totaled $300.7 million compared with $225.4 million in the year-ago period. Free cash flow was $448.8 million, down 37.5% year over year.

ORLY’s 2025 Outlook Updated

For 2025, O’Reilly estimates total revenues in the range of $17.5-$17.8 billion, compared to the previous estimate of $17.4-$17.7 billion. It expects EPS in the band of $2.85-$2.95. Comparable store sales are estimated to grow 3-4.5% compared to the previous estimate of 2-4%. The outlook for free cash flow is anticipated to be between $1.6 billion and $1.9 billion. Capital expenditure guidance is expected to be between $1.2 billion and $1.3 billion. The company intends to open 200-210 stores this year.

ORLY’s Zacks Rank & Key Picks

ORLY carries a Zacks Rank #3 (Hold) at present.

Some better-ranked stocks in the auto space are Ferrari N.V. RACE, Gentex Corporation GNTX and XPeng Inc. XPEV. RACE sports a Zacks Rank #1 (Strong Buy) at present, and GNTX & XPEV carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for RACE’s fiscal 2025 sales and earnings indicates year-over-year growth of 13.6% and 12.1%, respectively. EPS estimates for fiscal 2025 have improved 34 cents in the past 30 days. EPS estimates for 2026 have improved 38 cents in the past 30 days.

The Zacks Consensus Estimate for GNTX’s 2025 sales implies year-over-year growth of 1.51%. EPS estimates for 2025 have improved a penny in the past seven days.

The Zacks Consensus Estimate for XPEV’s 2025 sales and earnings indicates year-over-year growth of 102% and 66.7%, respectively. EPS estimates for 2025 and 2026 have remained the same in the past 30 days.

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This article originally published on Zacks Investment Research (zacks.com).

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