January 28, 2023

Javier14mascherano

Born to perform

O’Reilly Automotive shares slump on earnings miss (NASDAQ:ORLY)

1 min read

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O’Reilly Automotive (NASDAQ:ORLY) shares look to be in need of repair after earnings.

The Springfield, Missouri-based auto parts retailer reported Q1 GAAP EPS of $7.17 on Wednesday evening, missing analyst estimates by $0.34. Meanwhile, revenue of $3.3 billion barely missed expectations, coming up $20 million short of expectations.

“Historically, our first quarter can be volatile, as we see weather impacts from winter conditions early in the quarter and the timing of the onset of spring at the end,” CEO Greg Johnson commented. “This year was no exception, and we saw choppiness in our business that coincided with inclement weather at the beginning of our quarter and the slow start to spring, along with other macroeconomic pressures.”

Nevertheless, he cited a 4.8% increase in comparable store sales as indicative of the underlying strength of the business while noting the pricing power that the company commands to navigate supply chain and inflation headwinds. Management reaffirmed earnings guidance on the basis of its confident outlook for the upcoming quarters.

Shares fell over 5% in extended hours trading.

Read more on more positive dynamics for auto parts providers moving forward in 2022.

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