Financial Data and Key Metrics Changes - The company reported a total sales increase of 6.4% to $17.8 billion for 2025, reflecting over 50% growth in total sales volume over the last five years [5][39] - Operating profit for the full year was $3.5 billion, a 6.4% increase over 2024, with an operating profit margin of 19.5%, flat compared to the prior year [6][39] - Diluted earnings per share (EPS) for Q4 was $0.71, a 13% increase year-over-year, while full-year EPS was $2.97, a 10% increase over 2024 [8][39] Business Line Data and Key Metrics Changes - Comparable store sales increased by 5.6% in Q4, with professional business driving stronger growth at over 10% for the second consecutive quarter [9][10] - The DIY segment experienced low single-digit growth in comparable store sales, with some pressure on transaction counts noted [12][19] - Average ticket value grew in the mid-single digits, driven by same-SKU inflation of approximately 6% [10][18] Market Data and Key Metrics Changes - The U.S. car park has seen an increase in total miles driven of approximately 1% over the last two years, supporting steady growth in demand for automotive aftermarket services [15] - The company anticipates a stable industry environment in 2026, despite cautious consumer sentiment [15][16] Company Strategy and Development Direction - The company plans to open 225-235 net new stores in 2026, an increase of approximately 25 stores over 2025, driven by strong new store performance [22][23] - Capital expenditures for 2026 are projected to be between $1.3 billion and $1.4 billion, with a focus on new store growth and distribution capabilities [21][24] - The company aims to enhance its competitive positioning through continued investments in technology and customer service [38] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate cost pressures and maintain strong operating margins, despite facing headwinds from healthcare and self-insurance costs [7][34] - The guidance for 2026 includes expected comparable store sales growth of 3%-5%, reflecting a more cautious consumer environment [14][16] - Management remains optimistic about the company's growth potential, emphasizing the importance of customer service and market share gains [25][38] Other Important Information - The effective tax rate for Q4 was 21.5%, up from 19.6% in the previous year, with a full-year effective tax rate of 21.7% expected for 2026 [39][40] - Free cash flow for 2025 was $1.6 billion, with expectations for 2026 to be in the range of $1.8 billion to $2.1 billion [41][42] - The company repurchased 23 million shares in 2025, totaling $2.1 billion, as part of its ongoing share repurchase program [43] Q&A Session Summary Question: How long could elevated healthcare expenses continue? - Management indicated that the pressure from healthcare costs has persisted longer than expected, and they remain cautious about the outlook for 2026 [46][49] Question: Any other line items to consider for modeling? - Management highlighted self-insurance items and increased depreciation as key components to monitor moving forward [51][53] Question: Insights on the Virginia distribution center and its impact? - The new distribution center in Virginia is expected to enhance service capabilities in the Mid-Atlantic region, with plans for aggressive market penetration [57][60] Question: What are the risks of SG&A growth exceeding expectations? - Management acknowledged the potential for elevated SG&A growth due to inflationary pressures but emphasized their focus on managing costs effectively [76][78]

Core Insights - O'Reilly Automotive, Inc. (ORLY) reported Q4 2025 adjusted EPS of 71 cents, missing the Zacks Consensus Estimate of 72 cents, but up from 66 cents in the prior year [1][9] - Quarterly revenues reached $4.41 billion, exceeding the Zacks Consensus Estimate of $4.40 billion, and reflecting a year-over-year increase of 7.8% [1][9] Financial Performance - Comparable store sales increased by 5.6% during the quarter, with the company opening 47 new stores across the U.S., Mexico, and Canada, bringing the total store count to 6,585 as of December 31, 2025 [2][9] - Selling, general, and administrative expenses rose by 7% year over year to $1.46 billion, while operating income increased by 12% to $829 million [3] - Net income for the quarter was $605 million, up from $551 million in the same quarter last year [3] Share Repurchase and Cash Flow - O'Reilly repurchased 5.2 million shares for $500 million at an average price of $96.69 per share during the quarter, with an additional 1.4 million shares repurchased for $134 million at an average price of $93.86 per share by February 4, 2026 [4] - As of December 31, 2025, cash and cash equivalents were $193.8 million, an increase from $130.2 million a year earlier, while long-term debt rose to $6.02 billion from $5.52 billion [5] - Cash generated from operating activities was $633.4 million, compared to $624.5 million in the previous year, with free cash flow increasing by 9.5% year over year to $362.2 million [6] 2026 Outlook - For 2026, O'Reilly projects total revenues between $18.7 billion and $19 billion, up from $17.8 billion in 2025, with EPS expected to be in the range of $3.10 to $3.20 compared to $2.97 in 2025 [7] - Comparable store sales are anticipated to grow by 3-5%, and free cash flow is expected to be between $1.8 billion and $2.1 billion [7] - The company plans to open 225-235 new stores in 2026 [7] Market Position - O'Reilly currently holds a Zacks Rank 3 (Hold), while competitors such as Ford Motor, Modine Manufacturing, and PHINIA Inc. have a Zacks Rank 1 (Strong Buy) [8]

Core Viewpoint - O'Reilly Automotive, Inc. is a leading player in the automotive aftermarket industry, with a strong market presence and a recent earnings report indicating a positive trend despite a slight earnings miss [1][2][4]. Financial Performance - O'Reilly's recent quarterly earnings report showed earnings of $0.71 per share, slightly below the Zacks Consensus Estimate of $0.72 per share, but improved from the previous year's $0.66 per share, indicating a positive trend in financial performance [2]. - The company has a substantial market capitalization of approximately $81.85 billion, reflecting its significant presence in the market [4]. Stock Performance - Currently, ORLY's stock is priced at $96.74, experiencing a slight decrease of 0.37%, or $0.36, today, with a trading range for the day between $96.65 and $99.06 [3][5]. - Over the past year, ORLY has seen a high of $108.72 and a low of $85.55, indicating some volatility in its stock price [3]. Analyst Ratings - Roth Capital has maintained its "Buy" rating for O'Reilly Automotive, reflecting confidence in the company's long-term growth potential despite the recent earnings miss [4][5].

Core Insights - O'Reilly Automotive reported revenue of $4.41 billion for the quarter ended December 2025, reflecting a year-over-year increase of 7.8% [1] - The company's EPS was $0.71, up from $0.66 in the same quarter last year, although it fell short of the consensus estimate of $0.72 by 1.28% [1] Financial Performance - Revenue exceeded the Zacks Consensus Estimate of $4.4 billion, resulting in a surprise of +0.44% [1] - Comparable store sales increased by 5.6%, surpassing the average estimate of 4.9% from eight analysts [4] - Sales to Do-It-Yourself customers totaled $2.18 billion, slightly below the estimated $2.2 billion, but still representing a year-over-year increase of 4.2% [4] - Sales to professional service provider customers reached $2.15 billion, exceeding the average estimate of $2.1 billion, with a year-over-year growth of 13.5% [4] Operational Metrics - Total square footage was reported at 51.52 million square feet, above the four-analyst average estimate of 51.31 million square feet [4] - The total number of stores remained at 6,585, matching the average estimate [4] - The company opened 47 new stores, consistent with the estimates from three analysts [4] - The ending domestic store count was 6,447, slightly above the average estimate of 6,446 [4] - Sales per weighted-average store were $0.67 million, slightly below the estimated $0.68 million [4] - The ending count of stores in Canada was 26, exceeding the two-analyst average estimate of 25 [4] - The number of stores in Mexico at the end of the period was 112, below the estimated 114 [4] Stock Performance - O'Reilly Automotive's shares returned +7.4% over the past month, outperforming the Zacks S&P 500 composite's +0.9% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market [3]

分组1 - O'Reilly Automotive reported quarterly earnings of $0.71 per share, missing the Zacks Consensus Estimate of $0.72 per share, but showing an increase from $0.66 per share a year ago, resulting in an earnings surprise of -1.28% [1] - The company posted revenues of $4.41 billion for the quarter ended December 2025, surpassing the Zacks Consensus Estimate by 0.44%, and an increase from $4.1 billion year-over-year [2] - O'Reilly Automotive shares have increased approximately 6.5% since the beginning of the year, outperforming the S&P 500's gain of 1.1% [3] 分组2 - The current consensus EPS estimate for the coming quarter is $0.72 on revenues of $4.44 billion, and for the current fiscal year, it is $3.30 on revenues of $18.98 billion [7] - The Zacks Industry Rank for Automotive - Retail and Wholesale - Parts is currently in the bottom 30% of over 250 Zacks industries, indicating potential challenges for stock performance [8] - Another company in the same industry, Genuine Parts, is expected to report quarterly earnings of $1.79 per share, reflecting a year-over-year change of +11.2%, with revenues projected at $6.04 billion, up 4.6% from the previous year [9][10]

Financial Performance - Fourth quarter sales increased by $319 million, or 8%, to $4.41 billion from $4.10 billion year-over-year[3] - Fourth quarter gross profit rose 9% to $2.29 billion, representing 51.8% of sales, compared to 51.3% of sales in the same period last year[3] - Fourth quarter diluted earnings per share increased 13% to $0.71, while full-year diluted earnings per share rose 10% to $2.97[5][7] - Full-year sales increased by $1.07 billion, or 6%, to $17.78 billion from $16.71 billion year-over-year[6] - Full-year comparable store sales growth was 4.7%, with fourth quarter growth at 5.6%[5][8] - Net income for the year ended December 31, 2025, was $2.54 billion, compared to $2.39 billion in 2024, reflecting a growth of 6.4%[21] - Sales for the year ended December 31, 2025, reached $17.78 billion, an increase of 6.4% from $16.71 billion in 2024[21] - Gross profit for the year ended December 31, 2025, was $9.17 billion, up from $8.55 billion in 2024, indicating a growth of 7.3%[21] - Operating income for the year ended December 31, 2025, was $3.46 billion, compared to $3.25 billion in 2024, marking an increase of 6.5%[21] - Earnings per share (basic) for the year ended December 31, 2025, was $2.98, up from $2.73 in 2024, an increase of 9.2%[21] Cash Flow and Debt - Net cash provided by operating activities for 2025 was $2.8 billion[5] - Net cash provided by operating activities for the year ended December 31, 2025, was $2.76 billion, compared to $3.05 billion in 2024, a decrease of 9.5%[23] - Free cash flow for the year ended December 31, 2025, was $1,563,250 thousand, down from $1,987,808 thousand in 2024, representing a decrease of 21.3%[25] - Long-term debt increased to $6.02 billion in 2025 from $5.52 billion in 2024, reflecting a growth of 9.0%[19] - Adjusted debt increased to $9,137,784 thousand in 2025 from $8,392,484 thousand in 2024, resulting in an adjusted debt to EBITDAR ratio of 2.03, up from 1.99[25] Store Operations - The company opened 207 net new stores in 2025, including a new distribution center in Virginia[6] - The company opened 182 new stores in 2025, increasing the total domestic store count to 6,447, up from 6,265 in 2024[26] - Average inventory per store increased to $870 thousand in 2025 from $799 thousand in 2024, indicating a rise of 8.9%[25] - Total employment remained stable at 93,072 in 2025, compared to 93,176 in 2024[26] Inventory and Sales Metrics - Sales to do-it-yourself customers rose to $8,765,647 thousand in 2025, compared to $8,473,041 thousand in 2024, reflecting a growth of 3.4%[26] - Sales per weighted-average square foot increased to $345.73 in 2025 from $342.32 in 2024, reflecting a growth of 1.4%[26] - The company’s inventory turnover ratio decreased to 1.6 in 2025 from 1.7 in 2024[25] Guidance - Full-year 2026 guidance includes total revenue of $18.7 billion to $19.0 billion and diluted earnings per share of $3.10 to $3.20[10] Assets and Liabilities - Total assets increased to $16.54 billion as of December 31, 2025, up from $14.89 billion in 2024, representing an increase of 11.0%[19] - Total current liabilities rose to $8.78 billion in 2025, compared to $8.28 billion in 2024, an increase of 6.0%[19] - Cash and cash equivalents at the end of the period increased to $193.79 million from $130.25 million, a rise of 48.6%[23] Expenses - SG&A expenses for the fourth quarter increased 7% to $1.46 billion, representing 33.0% of sales[3] - EBITDAR for 2025 was reported at $4,511,937 thousand, an increase from $4,210,964 thousand in 2024, marking a growth of 7.2%[25]

Core Viewpoint - O'Reilly Automotive, Inc. reported record revenue and earnings for the fourth quarter and full year ended December 31, 2025, marking 33 consecutive years of comparable store sales growth since going public in 1993 [1]. Fourth Quarter Financial Results - Fourth quarter sales increased by $319 million, or 8%, to $4.41 billion compared to $4.10 billion in the same period last year [2]. - Gross profit for the fourth quarter rose by 9% to $2.29 billion, representing 51.8% of sales, up from 51.3% a year ago [2]. - Selling, general and administrative expenses (SG&A) increased by 7% to $1.46 billion, accounting for 33.0% of sales, compared to 33.3% last year [2]. - Operating income for the fourth quarter increased by 12% to $829 million, or 18.8% of sales, compared to 18.0% last year [2]. - Net income for the fourth quarter rose by $54 million, or 10%, to $605 million, representing 13.7% of sales, up from 13.5% a year ago [3]. - Diluted earnings per share for the fourth quarter increased by 13% to $0.71 on 848 million shares, compared to $0.63 on 870 million shares last year [3]. Full-Year Financial Results - Full-year sales increased by $1.07 billion, or 6%, to $17.78 billion from $16.71 billion in the previous year [4]. - Gross profit for the full year rose by 7% to $9.17 billion, representing 51.6% of sales, up from 51.2% last year [4]. - SG&A for the full year increased by 8% to $5.71 billion, accounting for 32.1% of sales, compared to 31.7% last year [4]. - Net income for the full year increased by $152 million, or 6%, to $2.54 billion, representing 14.3% of sales, consistent with the previous year [7]. - Diluted earnings per share for the full year increased by 10% to $2.97 on 856 million shares, compared to $2.71 on 881 million shares last year [7]. Comparable Store Sales - Comparable store sales grew by 5.6% in the fourth quarter, following a 4.4% increase in the same period last year [8]. - Full-year comparable store sales increased by 4.7%, compared to a 2.9% increase in the previous year [8]. Share Repurchase Program - In the fourth quarter, the company repurchased 5.2 million shares at an average price of $96.69, totaling $500 million [9]. - For the full year, 22.7 million shares were repurchased at an average price of $92.26, totaling $2.10 billion [9]. 2026 Guidance - The company anticipates net new store openings of 225 to 235 and comparable store sales growth of 3.0% to 5.0% for the year ending December 31, 2026 [10]. - Total revenue is projected to be between $18.7 billion and $19.0 billion, with diluted earnings per share expected to be between $3.10 and $3.20 [10].

Market Overview - U.S. stock futures are showing mixed performance as investors analyze corporate earnings and AI stock valuations [1][2] - Major indexes experienced a pullback on February 3, 2026, with the S&P 500 down 0.8% to 6,917.81, Nasdaq Composite down 1.4% to 23,255.19, and Dow Jones down 0.3% to 49,240.99 [3] Premarket Trading - S&P 500 futures are slightly up by 0.01% to 0.23%, while Dow Jones futures have risen between 0.1% and 0.28% [2] - Nasdaq 100 futures are down approximately 0.19%, indicating ongoing pressure on technology stocks [2] Earnings Releases - Notable premarket earnings reports are expected from Eli Lilly and Company (LLY), AbbVie Inc. (ABBV), Uber Technologies, Inc. (UBER), UBS Group AG (UBS), Boston Scientific Corporation (BSX), and CME Group Inc. (CME) [5] - Post-market earnings reports will include Alphabet Inc. (GOOGL), Qualcomm Incorporated (QCOM), ARM Holdings plc (ARM), O'Reilly Automotive, Inc. (ORLY), Snap Inc. (SNAP), and e.l.f. Beauty, Inc. (ELF) [6] Economic Data - Key economic reports to be released include the January ADP Employment Report and the January ISM Non-Manufacturing Composite index, which will provide insights into the U.S. labor market and services sector [7] Federal Reserve and Monetary Policy - The Federal Reserve maintained the federal funds rate at a target range of 3.5% to 3.75% during its January 2026 meeting, following three consecutive rate cuts [8] - Speculation exists regarding future monetary policy, especially with the nomination of Kevin Warsh as a potential successor to Jerome Powell [9] Major Stock Movements - Advanced Micro Devices (AMD) shares fell around 7% in premarket trading despite exceeding earnings forecasts, reflecting broader tech sell-off concerns [10] - Palantir Technologies Inc. (PLTR) rose 6.8% after reporting positive results, while Super Micro Computer, Inc. (SMCI) gained 11.12% [11] - The market is shifting towards value stocks, with energy, healthcare, and industrials showing early 2026 outperformance compared to tech [12]

Wall Street analysts forecast that O'Reilly Automotive (ORLY) will report quarterly earnings of $0.72 per share in its upcoming release, pointing to a year-over-year increase of 9.1%. It is anticipated that revenues will amount to $4.4 billion, exhibiting an increase of 7.3% compared to the year-ago quarter.The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This reflects how the analysts covering the stock have collectively reevaluated their initial estimates during thi ...

Group 1 - The macroeconomic environment in the previous year was characterized by significant changes in trade policies and a strong focus on artificial intelligence investments [1] - O'Reilly Automotive has demonstrated a strong track record, with positive share price returns in all but one year from 2016 to 2025, including a 15% increase last year [3][4] - The company has achieved 32 consecutive years of same-store sales (SSS) growth, indicating robust demand for its services [4] Group 2 - O'Reilly's earnings per share (EPS) is projected to grow by 11.4% in 2026, following an annualized growth rate of 17.9% from 2019 to 2024 [5] - The current price-to-earnings (P/E) ratio for O'Reilly is 32.5, which is 25% higher than its trailing five-year average, indicating a valuation that is difficult to predict [6] - O'Reilly is recognized as a leader in the aftermarket auto parts industry, with ongoing expansion through new store openings and a strong focus on share repurchases [7]