O’Reilly Automotive (ORLY) fell short of expectations in its third-quarter earnings report, sending ripples through the market. The company reported earnings of $11.41 per share, falling short of the analyst consensus estimate of $11.61 per share. Revenue also missed the mark, coming in at $4.36 billion compared to the expected $4.43 billion.
Adding to the disappointment, O’Reilly lowered its guidance for FY24. The company now anticipates total revenue between $16.6 billion and $16.8 billion, while analysts had projected $16.75 billion. Furthermore, O’Reilly projects diluted EPS to be in the range of $40.60 to $41.10, lower than the expected $41.14.
Despite the missed earnings and lowered guidance, O’Reilly’s stock gained 0.1% to trade at $1,200.67 on Friday. This suggests that investors are cautiously optimistic about the company’s future prospects.
Following the earnings announcement, several analysts adjusted their price targets for O’Reilly:
* Truist Securities analyst Scot Ciccarelli maintained a Buy rating on O’Reilly Automotive and raised the price target from $1,290 to $1,313.
* DA Davidson analyst Michael Baker also maintained a Buy rating and raised the price target from $1,275 to $1,390.
* Barclays analyst Seth Sigman kept an Equal-Weight rating but increased the price target from $986 to $1,088.
* RBC Capital analyst Steven Shemesh maintained an Outperform rating and boosted the price target from $1,115 to $1,286.
* TD Cowen analyst Max Rakhlenko maintained a Buy rating and raised the price target from $1,300 to $1,375.
The positive sentiment from analysts suggests that they believe O’Reilly Automotive remains a solid investment despite the recent miss. The company’s long-term growth prospects are still intact, and the market is likely anticipating a rebound in the coming quarters.
It’s important to note that this information is for general informational purposes only and should not be considered investment advice. Investors should conduct their own research and consult with a financial advisor before making any investment decisions.
