- Roth Capital Lifts PT on O’Reilly Automotive (ORLY) Stock
May 12, 2026
O’Reilly Automotive, Inc. (NASDAQ:ORLY) is one of the Best Stocks Under $100 to Invest In Now. On May 4, Roth Capital lifted its price objective on the company’s stock to $109 from $108, while keeping a “Buy” rating. As per the analyst, the firm is constructive after the company’s outperformance in Q1 2026, and with raised guidance by the management. Notably, O’Reilly Automotive, Inc. (NASDAQ:ORLY) increased its full-year diluted EPS guidance to between $3.15 to $3.25.Roth Capital Lifts PT on O’Reilly Automotive (ORLY) Stock
The improved guidance is backed by its Q1 2026 sales and operating performance, along with the impact of share repurchases.
O’Reilly Automotive, Inc. (NASDAQ:ORLY) posted a healthy start to 2026, thanks to an 8.1% rise in comparable store sales and a 16% growth in its Q1 2026 diluted EPS. Notably, the comparable store sales results surpassed expectations in both professional and DIY. It saw double-digit growth in its professional business and mid-single digit growth in DIY.
O’Reilly Automotive, Inc. (NASDAQ:ORLY) is a retailer and supplier of automotive aftermarket parts, tools, supplies, equipment, and accessories.
While we acknowledge the potential of ORLY as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
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- Citi upgrades Lowe’s to Buy but retail sector faces uncertain consumer outlook
May 12, 2026
Investing.com -- Analysts at Citigroup upgraded Lowe's to “Buy” in a new earnings preview report, arguing the home improvement retailer is well-positioned to outperform rivals despite ongoing macroeconomic uncertainty and a sluggish housing market.
The report, covering the U.S. broadlines and hardlines retail sector ahead of first-quarter earnings, said the group has underperformed in 2026 amid fears over weakening consumer demand and rising fuel prices. Citi noted, however, that most retailers are still expected to deliver results that are in line with or slightly above Wall Street expectations.
Citi upgraded Lowe’s from “Neutral” to “Buy” while maintaining its $285 price target, citing four consecutive quarters of positive same-store sales growth and continued market share gains over rival Home Depot. Analysts said Lowe’s benefits from greater exposure to do-it-yourself customers and smaller home improvement projects, which could prove more resilient in the current economic environment.
“We believe the home improvement industry has bottomed,” Citi analysts wrote, adding that lower interest rates and easing geopolitical tensions could support a multi-year recovery in housing-related spending.
The bank also highlighted valuation as a key factor behind the upgrade. Lowe’s currently trades at roughly 16.5 times forward earnings, a discount to other large retail leaders despite projected long-term earnings growth above 10%, according to the report.
Among Citi’s top retail picks are O'Reilly Automotive, Home Depot, AutoZone, Lowe’s, and Ollie's Bargain Outlet.
Elsewhere in the sector, Citi maintained cautious views on several consumer-facing names, including Best Buy and Petco, citing tougher sales comparisons and uneven consumer spending trends.
The report comes as investors closely monitor the health of the U.S. consumer amid elevated oil prices, geopolitical tensions, and continued uncertainty in the housing market. Citi said catalysts for a stronger retail recovery would include lower interest rates, declining oil prices, and improving consumer confidence.
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- Why O'Reilly Automotive (ORLY) is a Top Growth Stock for the Long-Term
May 11, 2026 · zacks.com
The Zacks Style Scores offers investors a way to easily find top-rated stocks based on their investing style. Here's why you should take advantage.
- ORLY Q1 Deep Dive: Market Share Gains and Consumer Demand Drive Upside
May 2, 2026
Auto parts and accessories retailer O’Reilly Automotive (NASDAQ:ORLY) beat Wall Street’s revenue expectations in Q1 CY2026, with sales up 10.2% year on year to $4.56 billion. On the other hand, the company’s full-year revenue guidance of $18.85 billion at the midpoint came in 0.6% below analysts’ estimates. Its GAAP profit of $0.72 per share was 3.3% above analysts’ consensus estimates.
Is now the time to buy ORLY? Find out in our full research report (it’s free).
O'Reilly (ORLY) Q1 CY2026 Highlights:
Revenue: $4.56 billion vs analyst estimates of $4.46 billion (10.2% year-on-year growth, 2.3% beat) EPS (GAAP): $0.72 vs analyst estimates of $0.70 (3.3% beat) Adjusted EBITDA: $985.8 million vs analyst estimates of $942 million (21.6% margin, 4.7% beat) The company reconfirmed its revenue guidance for the full year of $18.85 billion at the midpoint EPS (GAAP) guidance for the full year is $3.20 at the midpoint, roughly in line with what analysts were expecting Operating Margin: 18.5%, in line with the same quarter last year Locations: 6,644 at quarter end, up from 6,416 in the same quarter last year Same-Store Sales rose 8.1% year on year (3.6% in the same quarter last year) Market Capitalization: $76.72 billion
StockStory’s Take
O’Reilly Automotive delivered a strong Q1, with the market reacting positively to its better-than-expected revenue and profit. Management credited broad-based growth across both its professional and DIY customer segments, as well as higher transaction counts, for the outperformance. CEO Brad Beckham pointed to favorable industry tailwinds such as weather and timing of tax refunds, but stressed, “We are just as confident our sales momentum also reflects share gains our team is winning on both sides of our business.”
Looking ahead, O’Reilly’s guidance remains measured as management weighs ongoing consumer uncertainty and potential cost headwinds. The company expects continued benefit from industry fundamentals like the aging vehicle fleet and miles driven, but CFO Jeremy Fletcher emphasized caution, noting, “Rapid increases in fuel costs have the potential to impact consumer spending even in predominantly nondiscretionary sectors like our industry.” Management is focused on maintaining service quality and inventory availability to sustain share gains throughout the year.
Key Insights from Management’s Remarks
Management attributed the first quarter’s outperformance to a combination of robust transaction growth, operational discipline, and market share gains, while highlighting ongoing consumer caution and cost vigilance.
Story Continues
Professional segment momentum: O’Reilly’s professional business posted double-digit comparable sales growth for the third consecutive quarter, reflecting share gains in both mature and newer markets. Management described success in winning new customers as well as deeper relationships with existing accounts. DIY segment resurgence: The DIY (do-it-yourself) business contributed a mid-single-digit comp increase, with higher ticket counts and strong demand in maintenance categories such as oil, filters, and fluids. Management noted this segment matched the professional business as a driver of outperformance relative to expectations. Category and product strength: Results were broad-based, with undercar hard parts and core maintenance products performing well. Discretionary categories saw some improvement compared to recent quarters, though management attributed this partly to easier comparisons after previous softness. Private label expansion: O’Reilly’s private label products now represent over 50% of total revenue, enhancing margin flexibility and supply chain agility. Management highlighted the ability to source these products from multiple suppliers as a key advantage, particularly in volatile supply environments. Cost control and operational leverage: The company achieved 34 basis points of SG&A (selling, general, and administrative) leverage despite elevated volumes. Management credited disciplined expense management and productivity gains, while also noting ongoing investments in labor and store operations to support growth.
Drivers of Future Performance
O’Reilly’s outlook is shaped by cautious consumer behavior, input cost trends, and its strategy to drive operational efficiencies while expanding market share.
Consumer and macro uncertainty: Management is monitoring the potential impact of sustained inflation and fuel price spikes on consumer spending, especially for lower- and middle-income customers who historically drive demand for auto maintenance. While no meaningful demand pullback was observed in the first quarter, the company remains alert to sudden shifts that could affect volumes. Ongoing market share initiatives: The company aims to capitalize on opportunities to take share from smaller competitors, particularly independent auto parts retailers facing cost and inventory pressures. Beckham noted both new and existing markets are targets for further share gains, supported by O’Reilly’s scale and customer service. Cost management and supply chain resilience: O’Reilly expects to manage acquisition and distribution costs through private label penetration and supplier diversification. Management referenced the ability to offset cost pressures via pricing, productivity improvements, and flexible sourcing, while remaining cautious about passing along higher domestic freight or fuel costs unless inflation becomes broad-based.
Catalysts in Upcoming Quarters
In upcoming quarters, the StockStory team will be watching (1) the sustainability of transaction growth in both professional and DIY segments, (2) the company’s ability to maintain SG&A leverage and manage labor and input costs in a potentially volatile macro environment, and (3) the pace and success of new store openings in the U.S., Mexico, and Canada. Developments in fuel prices, supply chain stability, and competitive dynamics will also be important indicators of execution.
O'Reilly currently trades at $97.92, up from $91.69 just before the earnings. At this price, is it a buy or sell? Find out in our full research report (it’s free for active Edge members).
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- Why O'Reilly Automotive (ORLY) Is Up 6.6% After Strong Q1 2026 Same-Store Sales And Earnings
May 1, 2026
In late April 2026, O’Reilly Automotive reported first‑quarter 2026 results showing sales rising to US$4,560.54 million and net income to US$604.18 million, with diluted EPS increasing to US$0.72 from US$0.62 a year earlier. The company’s 8.1% comparable store sales growth, 14% operating profit increase, and continued share repurchases underline how its scale and distribution advantages are helping it win business from smaller independent competitors. We’ll now explore how this strong comparable store sales growth and market share gains may influence O’Reilly Automotive’s existing investment narrative.
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O'Reilly Automotive Investment Narrative Recap
To own O’Reilly Automotive, you generally need to believe its scale, distribution network, and parts availability can keep pulling business away from smaller rivals, especially in professional repair. The latest Q1 2026 beat reinforces that story and supports the near term catalyst of further market share gains. At the same time, it does little to lessen key risks around tariffs, higher store level costs, and potential fuel driven pressure on customers’ discretionary spending.
The Q1 2026 results are particularly relevant because they pair 8.1% comparable store sales growth and a 14% operating profit increase with heavy buybacks, including 10.0 million shares repurchased in the quarter. That combination ties directly into the existing catalysts around supply chain strength, private label penetration above 50% of revenue, and continued store expansion, while also highlighting how management is using excess cash to support earnings per share growth.
Yet despite this strength, investors should still be watching the risk that rising fuel costs could start to weigh on demand and freight expenses...
Read the full narrative on O'Reilly Automotive (it's free!)
O'Reilly Automotive's narrative projects $20.5 billion revenue and $3.0 billion earnings by 2028. This requires 6.2% yearly revenue growth and a $0.6 billion earnings increase from $2.4 billion today.
Uncover how O'Reilly Automotive's forecasts yield a $105.72 fair value, a 6% upside to its current price.
Exploring Other PerspectivesORLY 1-Year Stock Price Chart
Some of the most optimistic analysts were already penciling in revenue of about US$22.6 billion and earnings of roughly US$3.4 billion before this Q1 beat, so if you are focused on long term electric vehicle adoption and online competition, it is worth recognizing that these bullish views assume a much smoother path than the baseline narrative and may need to be revisited as new results come in.
Story Continues
Explore 4 other fair value estimates on O'Reilly Automotive - why the stock might be worth as much as 16% more than the current price!
Decide For Yourself
Disagree with existing narratives? Extraordinary investment returns rarely come from following the herd, so go with your instincts.
A great starting point for your O'Reilly Automotive research is our analysis highlighting 2 key rewards and 2 important warning signs that could impact your investment decision. Our free O'Reilly Automotive research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate O'Reilly Automotive's overall financial health at a glance.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include ORLY.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
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- Asian shares gain with most markets closed for May Day, while oil holds steady at $111 a barrel
May 1, 2026
Shares gained in Asia on Friday, though many markets in the region were closed for May Day holidays.
Brent crude’s price held steady at $111.66 per barrel while U.S. benchmark crude oil added 46 cents to $105.53 a barrel.
Prospects for a deal to cement a three-week ceasefire in the Iran wa r remained clouded as Iran’s supreme leader said it will protect its nuclear and missile capabilities as a national asset.
In Tokyo, the Nikkei 225 gained 0.7% to 59,687.65 as the Japanese yen gained against the U.S. dollar.
The dollar bought 157.16 yen, up from 156.61 yen late Thursday. But that was well below the 160 yen level hit on Thursday.
Australia's S&P/ASX 200 surged 1% to 8,750.40.
U.S. futures were higher after U.S stocks motored to more records Thursday on strong profits for Alphabet, Caterpillar and other big businesses. The gains came after the latest whipsaw moves for oil prices, which surged toward their highest levels since the war with Iran began only to quickly regress.
The S&P 500 rallied 1% and topped its prior all-time high to close out its best month in more than five years. It closed at 7,209.01. The Dow Jones Industrial Average leaped 1.6% to 49,652.14, while the Nasdaq composite climbed 0.9% to a record of 24,892.31.
Alphabet led the way and rallied 10% after the owner of Google and YouTube reported profit for the latest quarter that almost doubled analysts’ expectations. Investments in artificial intelligence “are lighting up every part of the business,” CEO Sundar Pichai said.
It’s the latest company to deliver fatter profits for the start of 2026 than analysts expected, even with very high oil prices and uncertainty about the economy.
Friday brought some calm to the oil market, where prices surged Thursday on worries over the potential long-term impact of the war on the flow of crude. Iran has closed the Strait of Hormuz to oil tankers, keeping them pent up in the Persian Gulf and away from customers worldwide, while a U.S. Navy blockade is preventing Iran from selling its own oil.
Traders are buying and selling contracts for different kinds of oil, going out for many months. In the most actively traded part of the market for Brent crude, for delivery in July, the price rose as high as $114.70 per barrel, fell back toward $107 and settled at $110.40 on Thursday, nearly unchanged from the day before.
So far during the war, the peak price for the most actively traded Brent contract has been $119.50, which was set last month.
In a less actively traded corner of the Brent market, the price for a barrel to be delivered in June briefly went above $126 overnight before pulling back toward $114.
Story Continues
Brent’s price was roughly $70 before the war.
In share trading, Caterpillar soared 9.9%, Eli Lilly jumped 9.8% and O’Reilly Automotive leaped 8.4% after all delivered profits for the latest quarter that topped analysts’ expectations. That’s big because stock prices tend to follow the track of corporate profits over the long term.
Meta Platforms tumbled 8.7% even though the company behind Facebook and Instagram made more profit last quarter than expected. Investors focused more on its increased forecast for how much it will spend on data centers and other investments as it builds out its AI capabilities.
Doubts are still high among some investors about whether all the spending on AI will produce enough profit and productivity to make it worth it.
Microsoft fell 3.9% after likewise raising its forecast for investments and other capital spending.
Amazon rose 0.8% after swinging between gains and losses through the day. It blew past analysts’ expectations for earnings in the latest quarter.
In the bond market, Treasury yields eased after oil prices fell back. Reports also suggested the U.S. economy’s growth accelerated by less in the first three months of the year than economists expected, while a measure of inflation worsened in March by about as much as expected.
A separate report said that fewer U.S. workers applied for unemployment benefits last week in an indication of fewer layoffs even though companies are announcing large cuts to workforces.
London’s FTSE 100 jumped 1.6% after the Bank of England kept its main interest rate on hold. That followed similar decisions by the U.S. Federal Reserve on Wednesday and the Bank of Japan on Tuesday to keep their rates unchanged.
__
AP Business Writers Stan Choe and Matt Ott contributed to this report.
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- O'Reilly Automotive Inc (ORLY) Q1 2026 Earnings Call Highlights: Strong Sales Growth and Strategic Expansion
May 1, 2026 · gurufocus.com
Comparable Store Sales Growth: 8.1% increase, surpassing expectations.Total Sales Growth: 10.2% increase for the first quarter of 2026.Operating Profit: 14% in
- S&P 500 and Nasdaq 100 Rally to Record Highs on Earnings Optimism
Apr 30, 2026
The S&P 500 Index ($SPX) (SPY) on Thursday closed up +1.02%, the Dow Jones Industrial Average ($DOWI) (DIA) closed up +1.62%, and the Nasdaq 100 Index ($IUXX) (QQQ) closed up +0.98%. June E-mini S&P futures (ESM26) rose +1.01%, and June E-mini Nasdaq futures (NQM26) rose +0.95%.
Stock indexes rallied sharply on Thursday, with the S&P 500 and Nasdaq 100 posting new all-time highs and the Dow Jones Industrials posting a 1-week high. Better-than-expected earnings results from Alphabet and Qualcomm supported gains in the broader market. Alphabet rallied more than +9% after reporting Q1 revenue ex-TAC of $94.57 billion, above the consensus of $91.57 billion. Qualcomm surged more than +15% to lead chipmakers higher after reporting stronger-than-expected Q2 adjusted revenue. In addition, lower crude oil prices on Thursday lowered inflation expectations and bond yields, both of which are supportive of stocks. The 10-year T-note yield fell -5 bp at 4.38%. Join 200K+ Subscribers: Find out why the midday Barchart Brief newsletter is a must-read for thousands daily.
On the negative side, Meta Platforms fell more than -8% after issuing a capital expenditure forecast that was higher than expected. Also, Microsoft closed down more than -3%, despite reporting Q3 results that beat expectations, as analysts expressed concern about the pace of growth in the company’s Azure cloud-computing business.
Stocks maintained their gains on Thursday after mixed US economic news. Weekly jobless claims fell to a 57-year low, while Q1 US GDP grew at a slower-than-expected pace.
US weekly initial unemployment claims fell -26,000 to a 57-year low of 189,000, showing a stronger labor market than expectations of 212,000. Weekly continuing claims fell -23,000 to a 2-year low of 1.785 million, showing a stronger labor market than expectations of 1.815 million.
US Mar personal spending rose +0.9% m/m, right on expectations. Mar personal income rose +0.6% m/m, stronger than expectations of +0.3% m/m.
The US Mar core PCE price index, the Fed's preferred inflation gauge, rose +0.3% m/m and +3.2% y/y, right on expectations, with the +3.2% y/y gain being the largest increase in 2.25 years.
The US Q1 employment cost index rose +0.9%, stronger than expectations of +0.8%
US Q1 GDP rose +2.0% (q/q annualized), weaker than expectations of +2.3%. The Q1 core PCE price index rose +4.3%, stronger than expectations of +4.1% and the largest increase in 3 years.
The US Apr MNI Chicago PMI unexpectedly fell -3.6 to a 4-month low of 49.2, weaker than expectations of an increase to 54.9.
US Mar leading indicators fell -0.6% m/m, weaker than expectations of -0.2% m/m and the biggest decline in 11 months.
WTI crude oil prices (CLM26) fell from a 3-week high on Thursday and closed down by more than -1% amid concerns that higher oil prices are starting to weigh on economic growth, which could further depress demand for crude. Crude prices initially rose on Thursday after Axios reported that President Trump will be briefed on new military options for action in Iran, signaling the potential for fresh escalation in the war. US Central Command has prepared a plan for a "short and powerful" wave of strikes on Iran, likely infrastructure targets. The US and Iran are locked in a battle for control of the Strait of Hormuz, with both sides blocking the waterway to gain leverage during an extended ceasefire. The Strait of Hormuz remains essentially closed, threatening to deepen the global energy crisis, as flows of crude, natural gas, and oil products from the Persian Gulf have been cut off since the war began in late February. The ongoing blockade could exacerbate global oil and fuel shortages, as about a fifth of the world’s oil and liquefied natural gas transits through the strait. Goldman Sachs estimates that crude output in the Persian Gulf has been curtailed by about 14.5 million bpd, or more than 50%, so far in April, and that the current disruption has drawn down nearly 500 million bbl from global crude stockpiles, which could hit a billion bbl by June.
Kevin Warsh won the banking confirmation vote of the Senate Banking Committee on Wednesday, putting him on track to be confirmed as Fed Chair by the full Senate before Jerome Powell’s term ends on May 15. Fed Chair Powell said after Wednesday’s FOMC meeting that he will continue to serve as Fed Governor “for a period of time to be determined.” Mr. Powell’s seat on the Board of Governors doesn’t expire until 2028.
The markets are discounting an 8% chance of a -25 bp FOMC rate cut at the next FOMC meeting on June 16-17.
Earnings season ramps up this week with several Magnificent Seven technology stocks reporting. Earnings results thus far have been supportive of stocks. As of Thursday, 80% of the 247 S&P 500 companies that reported Q1 earnings have beaten estimates. Q1 S&P 500 earnings are projected to climb +12% y/y, according to Bloomberg Intelligence. Stripping out the technology sector, Q1 earnings are projected to increase around +3%, the weakest in two years.
Overseas stock markets settled mixed on Thursday. The Euro Stoxx 50 recovered from a 3-week low and closed up +1.12%. China's Shanghai Composite climbed to a 1.5-month high and closed up +0.11%. Japan's Nikkei Stock Average closed down -1.06%.
Interest Rates
June 10-year T-notes (ZNM6) on Thursday closed up by +7.5 ticks. The 10-year T-note yield fell -5.0 bp to 4.380%. T-note prices found support on Thursday amid a -1% decline in WTI crude oil prices, which lowered inflation expectations. Also, weaker-than-expected US Q1 GDP is supportive for T-note prices.
Gains in T-notes were limited on Thursday after US weekly jobless claims fell to a 57-year low, and the Q1 employment cost index rose more than expected, hawkish factors for Fed policy. Also, Thursday’s rally in the S&P 500 to a new record high reduced safe-haven demand for T-notes.
European government bond yields moved lower on Thursday. The 10-year German bund yield fell from a 15-year high of 3.133% and finished down -7.4 bp to 3.037%. The 10-year UK gilt yield fell from a 1-month high of 5.088% and finished down -5.9 bp to 5.012%.
Eurozone Apr CPI rose +3.0% y/y, right on expectations and the strongest pace of increase in 2.5 years. Apr core CPI rose +2.2% y/y, right on expectations.
The Eurozone Mar unemployment rate fell -0.1 and matched a record low of 6.2%, right on expectations.
Eurozone Q1 GDP rose +0.1% q/q and +0.8% y/y, weaker than expectations of +0.2% m/m and +0.9% y/y.
German Mar retail sales fell -2.0% m/m, weaker than expectations of -0.2% m/m and the biggest decline in nearly 3.5 years.
The German Apr unemployment change rose by +20,000, showing a weaker labor market than expectations of 4,300. The Apr unemployment rate was unchanged at 6.4%, showing a weaker labor market than expectations of 6.3%
The ECB, as expected, kept the deposit facility rate unchanged at 2.00% and said, "The upside risks to inflation and the downside risks to growth have intensified."
ECB President Christine Lagarde said, "The economic growth outlook is highly uncertain and will depend on how long the war in the Middle East will last, how strongly it affects energy and other commodity markets, as well as global supply chains." She added, "Incoming information suggests the conflict is weighing on economic activity, surveys point to slowing growth, and consumers and businesses have become less confident about the future."
Bloomberg reported that several ECB officials said they are likely to raise interest rates at their June meeting unless there are positive developments on energy prices and an end to the Iran war.
The BOE, as expected, kept its key interest rate unchanged at 3.75% in an 8-1 vote. BOE Governor Bailey said that unchanged interest rates are "a reasonable place."
Swaps are discounting an 89% chance of a +25 bp ECB rate hike at its next policy meeting on June 11.
US Stock Movers
Qualcomm (QCOM) closed up more than +15% to lead gainers in the Nasdaq 100 after reporting Q2 adjusted revenue of $10.60 billion, above the consensus of $10.56 billion, and saying it was “excited” by its entry into data centers, where a “leading hyperscaler custom silicon engagement is on track for initial shipments later this year.” Other chipmakers and AI-infrastructure stocks rallied on the news, with Western Digital (WDC), Advanced Micro Devices (AMD), and Marvell Technology (MRVL) closing up more than +5%, and ARM Holdings Plc (ARM) and Texas Instruments (TXN) closing up more than +4%. Also, Lam Research (LRCX), Applied Materials (AMAT), Analog Devices (ADI), ASML Holding NV (ASML), and Microchip Technology (MCHP) closed up more than +3%.
Quanta Services (PWR) closed up more than +15% to lead gainers in the S&P 500 after reporting Q1 revenue of $7.87 billion, well above the consensus of $7.02 billion.
Teradyne (TER) closed up more than +12% after JPMorgan Chase upgraded the stock to overweight from neutral with a price target of $400.
Caterpillar (CAT) closed up more than +9% to lead gainers in the Dow Jones Industrials after reporting Q1 adjusted EPS of $5.54, well above the consensus of $4.63.
Alphabet (GOOGL) closed up more than +9% after reporting Q1 revenue ex-TAC of $94.57 billion, above the consensus of $91.57 billion.
Eli Lilly (LLY) closed up more than +9% after raising its full-year revenue forecast to $82 billion to $85 billion from a previous forecast of $80 billion to $83 billion.
O’Reilly Automotive (ORLY) closed up more than +7% after reporting Q1 operating income of $841.6 million, higher than the consensus of $807.9 million.
Royal Caribbean Cruises Ltd (RCL) closed up more than +3% after reporting Q1 adjusted EPS of $3.60, stronger than the consensus of $3.21.
Wayfair (W) closed down more than -13% after reporting Q1 adjusted EPS of 26 cents, weaker than the consensus of 30 cents.
Willis Towers Watson Plc (WTW) closed down more than -11% to lead losers in the S&P 500 after reporting Q1 revenue of $2.41 billion, below the consensus of $2.42 billion.
International Paper (IP) closed down more than -9% after reporting Q1 adjusted operating EPS of 15 cents, below the consensus of 17 cents.
Meta Platforms (META) closed down more than -8% to lead losers in the Nasdaq 100 despite reporting better-than-expected Q1 earnings as it raised its full-year capital expenditure forecast to $125 billion to $145 billion from $115 billion to $135 billion, above the consensus of $123.11 billion.
Nvidia (NVDA) closed down by more than -4% to lead losers in the Dow Jones Industrials after Goldman Sachs said investors should favor big spending “hyperscalers” over chipmakers.
Microsoft (MSFT) closed down more than -3% despite reporting Q3 results that beat expectations, as analysts expressed concern about the pace of growth in the company’s Azure cloud-computing business.
Smurfit Westrock (SW) closed down more than -3% after reporting Q1 adjusted Ebitda of $1.08 billion, weaker than the consensus of $1.15 billion.
Earnings Reports(5/1/2026)
AES Corp/The (AES), Affiliated Managers Group Inc (AMG), Aon PLC (AON), Ares Management Corp (ARES), AutoNation Inc (AN), Brookfield Renewable Corp (BEPC), Cboe Global Markets Inc (CBOE), Chevron Corp (CVX), Church & Dwight Co Inc (CHD), Colgate-Palmolive Co (CL), Dominion Energy Inc (D), Estee Lauder Cos Inc/The (EL), Exxon Mobil Corp (XOM), Federal Realty Investment Trust (FRT), Gates Industrial Corp PLC (GTES), HF Sinclair Corp (DINO), Lazard Inc (LAZ), Lear Corp (LEA), Liberty Global Ltd (LBTYA), Linde PLC (LIN), LyondellBasell Industries NV (LYB), Madison Square Garden Sports Corp (MSGS), Moderna Inc (MRNA), Newell Brands Inc (NWL), nVent Electric PLC (NVT), OneMain Holdings Inc (OMF), Summit Therapeutics Inc (SMMT), TPG Inc (TPG). On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
More news from Barchart
Stocks Rise Before the Open as Investors Weigh Big Tech Earnings, Iran War NewsStock Index Futures Gain on Tech Boost Ahead of Fed Decision and Megacap EarningsNasdaq Futures Plunge as AI Concerns Resurface, FOMC Meeting and Earnings in FocusOption Volatility and Earnings Report for April 27 – May 1
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
- O'Reilly outlines 2026 EPS of $3.15-$3.25 while keeping comps at 3%-5%
Apr 30, 2026
Earnings Call Insights: O'Reilly Automotive (ORLY) Q1 2026
MANAGEMENT VIEW
* CEO Brad Beckham credited “our over 93,000 team members” and said Q1 delivered “an 8.1% increase in comparable store sales” and “double-digit total sales growth of 10.2%,” alongside “an impressive 14% increase in operating profit” and “a 16% increase in diluted earnings per share.”
* CEO Beckham said professional remained the larger driver and that Q1 marked “the third straight quarter we have posted double-digit professional comps,” while DIY produced “a mid-single-digit comp,” with upside “driven by better-than-expected growth in ticket counts.”
* CEO Beckham tied part of the quarter’s upside to “the combination of an increased average refund size as well as higher total refund dollars” plus “warm and generally dry conditions,” while also saying, “we are just as confident… reflects share gains our team is winning on both sides of our business.”
* Quote (Executive VP & CFO Jeremy Fletcher): “We repurchased 10 million shares at an average share price of $92.45 for a total investment of $923 million.”
* Quote (President Brent Kirby): “Our private label penetration has climbed to over 50% of total revenue.”
OUTLOOK
* Management kept full-year comparable store sales guidance at 3% to 5%, with CEO Beckham stating results “right now have pushed us to the top half of our full year range,” while adding, “we remain cautious in our outlook for the consumer.”
* CEO Beckham highlighted fuel as a swing factor: “Rapid increases in fuel costs have the potential to impact consumer spending,” while also noting, “our first quarter results and trends thus far in April have not indicated a pullback in consumer demand.”
* Management raised full-year EPS guidance to $3.15 to $3.25; CEO Beckham said, “Our increase in EPS guidance is driven by our first quarter sales and operating performance and the impact of shares repurchased through the date of our earnings release yesterday.”
* Operating profit guidance increased by 10 basis points to 19.3% to 19.8%, while gross margin guidance stayed at 51.5% to 52% and total revenue guidance remained $18.7 billion to $19 billion.
FINANCIAL RESULTS
* Q1 gross margin was 51.5%, and President Kirby said it was supported by “acquisition cost reductions and improved leverage of our distribution cost driven by solid DC productivity and strong sales volumes,” while noting, “our first quarter gross margins were not materially impacted by the changes within the tariff environment.”
* Executive VP & CFO Fletcher said Q1 free cash flow was $785 million versus $455 million in 2025, and full-year free cash flow guidance stayed $1.8 billion to $2.1 billion.
* President Kirby said Q1 SG&A delivered “34 basis points of SG&A leverage,” with “average SG&A per store growth of 5.5%,” while still expecting full-year SG&A per store growth of “approximately 3% to 4%.”
* Balance sheet and working capital updates included inventory per store of $874,000, turns of 1.6x, AP-to-inventory of 125% (with year-end expectation “approximately 122%”), and adjusted debt-to-EBITDA of 2.03x.
* Expansion and investment pacing included 59 net new stores opened in Q1, reaffirmed 2026 net new store target of 225 to 235, Q1 CapEx of $244 million, and reiterated full-year CapEx of $1.3 billion to $1.4 billion.
Q&A
* Simeon Gutman, Morgan Stanley: Asked if share gains are accelerating vs. the industry; CEO Brad Beckham said, “we do agree with you that our team continues to drive solid share gains… on both sides of the business,” and added the company has “10% share” in North America.
* Gregory Melich, Evercore ISI: Asked about same-SKU inflation trajectory; Executive VP & CFO Jeremy Fletcher said the company’s outlook for same-SKU inflation “is unchanged for us at the 3%,” while emphasizing, “we try not to speculate too much on the future movements in prices.”
* Gregory Melich, Evercore ISI: Pressed on tax refunds and cadence; CEO Beckham responded, “we want to be a little bit careful trying to quantify what was tax refunds, what was weather,” but said “tax was a helper, and… weather was a helper overall.”
* Christian Carlino, JPMorgan: Asked about oil price shock and passing costs through; Executive VP & CFO Fletcher said sustained operating-cost inflation could be passed through over time, but fuel is “manageable… within that broader context of our expense outlook.”
* Michael Baker, D.A. Davidson: Asked about cost overruns and the prior-quarter legal/healthcare headwinds; Executive VP & CFO Fletcher said insurance and liability exposure “was very much in line with what we had expected,” with Q1 variance mainly from higher transaction-driven labor and incentive comp.
* Bret Jordan, Jefferies: Asked about private label targets and regional differences; President Brent Kirby said, “we don't have a stated goal,” and CEO Beckham said there is “not really a disparity” in adoption between mature and newer markets.
* Bret Jordan, Jefferies: Asked about motor oil supply risk; President Kirby said there is “some pressure across our supplier base right now on pricing,” depending on “the duration of the conflict.”
* Scot Ciccarelli, Truist: Asked what’s driving SG&A per store growth; Executive VP & CFO Fletcher pointed first to “wage rates,” and CEO Beckham said stores are “walking the fine line” between service and labor management.
* Maksim Rakhlenko, TD Cowen: Asked about gas prices and miles driven sensitivity; CEO Beckham said it would take “a sustained level well over… $4 a gallon” to impact miles driven, and also said share gains are coming in part from “that weaker or smaller independent player.”
SENTIMENT ANALYSIS
* Analysts were slightly negative to neutral, pressing repeatedly on sustainability of share gains, inflation cadence, and expense drivers (notably fuel, insurance/liabilities, and potential oil-related shocks).
* Management tone was slightly positive in prepared remarks and more cautious in Q&A on macro sensitivity, with CEO Beckham saying, “we remain cautious in our outlook for the consumer,” and CFO Fletcher emphasizing, “we try not to speculate too much.”
* Versus last quarter, analyst focus shifted from persistent self-insurance/healthcare pressures and tariff deflation hypotheticals toward market share acceleration, fuel sensitivity, and oil-category supply risk; management maintained a similar “don’t overreact” posture around early-year volatility.
QUARTER-OVER-QUARTER COMPARISON
* Guidance changes versus Q4 2025 were concentrated in profitability and EPS: EPS guidance increased to $3.15-$3.25 from $3.10-$3.20, and operating profit guidance moved to 19.3%-19.8% from 19.2%-19.7%, while comps stayed 3%-5% and revenue stayed $18.7B-$19B.
* The consumer message was broadly consistent (cautious stance), but Q1 added explicit emphasis on fuel-cost shocks and referenced Iran-related oil market uncertainty.
* Q4 discussion leaned heavily on elevated self-insurance/healthcare and litigation costs; Q1 messaging framed those as “in line with what we had expected,” with incremental SG&A mainly tied to supporting stronger-than-planned volumes.
RISKS AND CONCERNS
* CEO Beckham warned that “spikes in prices at the pump” can trigger “short-term reactions,” even in a nondiscretionary category.
* President Kirby said “the conflict in Iran and resulting constraints on global oil supply” could disrupt categories “particularly motor oil” and affect supply chain costs such as freight, though management said it did not adjust full-year assumptions.
* Management reiterated tariff uncertainty but said Q1 results and outlook did not include “any benefit from tariff refunds,” and stated net tariff exposure has “remained relatively stable.”
FINAL TAKEAWAY
Management described Q1 as a stronger-than-expected start driven by broad-based category strength, higher transaction growth, and continued professional momentum, while keeping the full-year sales framework intact amid consumer and fuel-price caution. The company raised EPS and operating profit guidance based on Q1 execution and buybacks, reiterated major 2026 investment and store-opening plans, and positioned private label scale and supply-chain productivity as key tools to protect availability and margins despite geopolitical and fuel-related uncertainties.
Read the full Earnings Call Transcript [https://seekingalpha.com/symbol/orly/earnings/transcripts]
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- O'Reilly Automotive Q1 Earnings Call Highlights
Apr 30, 2026
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Key Points
O'Reilly reported a strong start to fiscal 2026 with comparable store sales up 8.1%, total sales +10.2%, operating profit +14% and diluted EPS +16%, driven by stronger-than-expected transaction growth across professional and DIY customers. Management maintained full-year comparable-sales guidance of 3%–5% but raised full-year diluted EPS to $3.15–$3.25 and nudged operating profit guidance up 10 basis points to 19.3%–19.8%, while flagging potential volatility from fuel prices and weather. Cash generation and capital returns were strong: first-quarter free cash flow was $785 million, the company repurchased 10 million shares for about $923 million, adjusted debt/EBITDA finished at 2.03x, and management kept plans for 225–235 new stores and $1.3–$1.4 billion in CapEx. Interested in O'Reilly Automotive, Inc.? Here are five stocks we like better.
Hitting the Brakes: Is O'Reilly's Stock a Breakdown or a Buy?
O'Reilly Automotive (NASDAQ:ORLY) reported a strong start to fiscal 2026, led by better-than-expected comparable store sales growth and operating profit expansion, while management reiterated a cautious stance on the consumer and maintained most of its full-year outlook.
Comparable sales rise 8.1% as transactions outpace expectations
CEO Brad Beckham said the company delivered an 8.1% increase in comparable store sales in the first quarter, which he described as above internal expectations. Total sales rose 10.2%, driven by the comp gain, new store contributions, and international operations. Beckham also said operating profit rose 14% and diluted EPS increased 16% in the quarter.
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Beckham attributed the quarter’s outperformance primarily to stronger-than-expected transaction growth on both the professional and DIY sides of the business. He said the professional business remained the larger contributor to overall comps, marking the third consecutive quarter with double-digit professional comparable sales, while the DIY business posted a mid-single-digit comp and was an “equal driver” of the upside versus expectations.
Management also pointed to industry factors that likely helped early-year demand. Beckham said the first quarter can be volatile due to winter weather and the timing of tax refunds, noting that January weather was favorable and that volumes increased into February as refunds flowed. He said the combination of higher average refund size and total refund dollars, along with “warm and generally dry conditions,” appeared to benefit vehicle maintenance activity.
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By category, Beckham said results were “broad-based,” with strength in undercar hard parts as well as maintenance categories such as oil, filters, and fluids. He added that the company still sees “some evidence of consumer caution,” with discretionary categories performing better mainly due to softer comparisons.
On pricing, Beckham said average ticket was a mid-single-digit contributor to comps on both sides of the business, and same-SKU inflation of approximately 6% matched expectations. He noted the company expects a larger inflation benefit in the first half of 2026, given more significant cost and price increases in 2025 are not lapped until the third quarter.
Guidance: comp outlook maintained, EPS and operating margin raised
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Despite the strong quarter, management maintained its full-year comparable sales guidance range of 3% to 5%. Beckham said first-quarter results pushed performance to the top half of that range, but he emphasized caution given potential volatility from fuel prices and the typical first-quarter effects from weather and tax refunds.
Beckham said the company is increasing full-year diluted EPS guidance to $3.15 to $3.25, citing the first-quarter sales and operating performance and the impact of shares repurchased through the earnings release date.
President Brent Kirby said O’Reilly is also raising full-year operating profit guidance by 10 basis points to a range of 19.3% to 19.8%. He said the update reflects operating leverage from the first quarter while keeping assumptions for the remaining quarters unchanged.
Margins: gross margin improves modestly; SG&A leverage continues
Kirby reported first-quarter gross margin of 51.5%, up 19 basis points from the prior year and in line with expectations. He said seasonal product mix pressured gross margin, but the company offset that through acquisition cost reductions and improved leverage in distribution costs, supported by distribution center productivity and strong sales volumes.
Kirby said the tariff environment did not materially impact first-quarter gross margin and noted that neither results nor outlook include any benefit from potential tariff refunds. He also cited the conflict in Iran as a risk that could disrupt certain categories—particularly motor oil—and increase freight costs, but said there was no material first-quarter impact and the company did not adjust its full-year assumptions for those factors.
O’Reilly maintained full-year gross margin guidance of 51.5% to 52%. Kirby also highlighted private-label progress, saying private-label penetration has climbed to over 50% of total revenue. In response to an analyst question, Kirby said the company does not have a stated penetration target, emphasizing a “good, better, best” line design approach and continued inclusion of national brands where relevant.
On expenses, Kirby said the company generated 34 basis points of SG&A leverage in the quarter. He said SG&A dollars were at the higher end of expectations due to incremental spending to support elevated volumes, resulting in 5.5% SG&A per store growth. O’Reilly continues to expect full-year SG&A per store growth of approximately 3% to 4%, with moderation later in the year as comparisons change.
In Q&A, CFO Jeremy Fletcher said the first-quarter SG&A outcome was broadly in line with expectations, with some pressure from insurance and liability-related items that have been discussed in prior quarters and additional spending tied to a faster pace of business, including incentive compensation. On labor, Fletcher said wage rates are the first place to look, and Beckham credited store leadership for balancing customer service needs with labor management and productivity improvements.
Cash flow, leverage, and repurchases
Fletcher said first-quarter free cash flow was $785 million, up from $455 million in the prior-year period. He attributed the increase to operating income growth, a reduction in net inventory, and the timing of capital spending. Full-year free cash flow guidance remained unchanged at $1.8 billion to $2.1 billion.
Fletcher also provided balance sheet and capital return updates:
Adjusted debt-to-EBITDA finished the quarter at 2.03x, flat versus year-end 2025 and below the company’s 2.5x leverage target, which it intends to approach “prudently” over time. Share repurchases totaled 10 million shares at an average price of $92.45, for $923 million in the quarter. Fletcher said the EPS guide includes repurchases through the call date, but not any additional buybacks. The company ended the quarter with an AP-to-inventory ratio of 125% and expects it to moderate to approximately 122% by year-end as inventory investment increases.
Store growth and capital investment plans remain on track
Kirby said O’Reilly opened 59 net new stores across the U.S., Mexico, and Canada in the first quarter and remains on track to open 225 to 235 net new stores in 2026. First-quarter capital expenditures were $244 million, and the company maintained its full-year CapEx plan of $1.3 billion to $1.4 billion.
Inventory per store ended the quarter at $874,000, up 8.5% year over year and up 0.5% from year-end. Kirby said O’Reilly still targets 5% growth per store by the end of 2026, adding that the quarter-end inventory position was slightly below plan due to strong sales and the timing of inventory additions. Inventory turns were 1.6x.
In the Q&A session, Beckham said internal and external data suggests the company’s market share gains are “solid” and potentially beyond what it has seen in recent years, citing execution across store operations, sales, and supply chain. However, he said the company does not disclose the percentage of professional customers for which it is the primary distributor.
Looking ahead, management reiterated that it is monitoring fuel prices and broader consumer dynamics. Beckham said that while the company has not seen a demand pullback so far, sustained high gasoline prices can create short-term shocks for consumers, and prolonged levels “well north” of $4 per gallon would be more likely to affect miles driven based on historical patterns.
About O'Reilly Automotive (NASDAQ:ORLY)
O'Reilly Automotive, Inc is a leading retailer and distributor in the automotive aftermarket, supplying parts, tools, supplies and accessories for both professional service providers and do‑it‑yourself (DIY) customers. The company's product assortment covers replacement parts, maintenance items, performance parts, collision components and shop equipment, complemented by diagnostic tools, batteries, chemicals and consumables. O'Reilly serves customers through company-operated retail stores, commercial sales programs for repair shops and maintenance fleets, and digital channels that support parts lookup, ordering and fulfillment.
The company operates a broad supply chain that includes regional distribution centers to support rapid replenishment of store inventory and commercial deliveries.
The article "O'Reilly Automotive Q1 Earnings Call Highlights" was originally published by MarketBeat.
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