O'Reilly Automotive, Inc.

(NASDAQ Global Select)
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Bullish +65

Zacks Research Issues Negative Estimate for ORLY Earnings - MarketBeat

AI-generated analysis

πŸ“‰ Zacks Research cut its Q4 2026 EPS estimate for O'Reilly Automotive to $0.76 from $0.78.

πŸš€ ORLY reported Q4 EPS of $0.72, beating estimates by $0.03, with revenue of $4.56 billion surpassing the $4.46 billion forecast.

πŸ’° Management maintained FY2026 guidance between $3.15 and $3.25 per share.

πŸ“Š The stock carries a 'Moderate Buy' consensus rating with a price target of $112.25 despite trading near $89.70.

🏦 Institutional ownership is high at 85%, with Sei Investments increasing holdings by 163.3% in Q1.

πŸ“‰ CEO Brad W. Beckham sold 13,635 shares for approximately $1.3 million on May 8th.

πŸ“‰ SVP Philip M. Hopper sold 3,700 shares for about $350,000 on May 7th.

πŸ“ˆ Key financial metrics include a P/E ratio of 29.31 and a net margin of 14.30%.

πŸ” Analysts from Roth MKM, Evercore, Morgan Stanley, and Raymond James maintain buy ratings with targets between $109-$115.

Bullish Signals
  • O'Reilly Automotive beat Q4 earnings estimates with EPS of $0.72 versus the consensus of $0.69.
  • Revenue of $4.56 billion exceeded analyst expectations of $4.46 billion, showing strong top-line growth.
  • Management has maintained its full-year 2026 guidance range of $3.15–$3.25 EPS despite the lowered Zacks estimate.
  • The stock holds a 'Moderate Buy' consensus rating with a price target of $112.25, implying significant upside from current levels.
  • Major institutions like Sei Investments and Signature Equity Partners significantly increased their stakes in Q1.
  • Analysts from top firms including Morgan Stanley and Raymond James have reiterated strong buy or outperform ratings.
Risk Factors
  • Zacks Research lowered its Q4 2026 EPS estimate to $0.76, signaling a more cautious near-term outlook.
  • CEO Brad W. Beckham sold 13,635 shares for $1.3 million, representing a 52.68% decrease in his direct ownership.
  • SVP Philip M. Hopper sold 3,700 shares for $350,000, reducing his direct ownership by 43.08%.
  • Shares recently traded lower around $89.70, which is below the consensus price target of $112.25.
Full Analysis
Zacks Research lowered its Q4 2026 earnings per share (EPS) estimate for O'Reilly Automotive (ORLY) to $0.76 from $0.78, reflecting a slightly more cautious outlook despite the company's recent solid performance. The specialty retailer reported actual Q4 EPS of $0.72, beating consensus estimates of $0.69, and revenue of $4.56 billion, which topped forecasts of $4.46 billion. Management maintained its full-year 2026 guidance range of $3.15 to $3.25 per share. Wall Street sentiment remains broadly positive with a consensus 'Moderate Buy' rating and a price target of $112.25, even as shares recently traded around $89.70. Major analysts including Roth MKM, Evercore, Morgan Stanley, Robert W. Baird, and Raymond James have reiterated buy or outperform ratings with target prices ranging from $109 to $115. Institutional ownership stands at 85%, with significant increases in holdings by Sei Investments Co., Signature Equity Partners LLC, and CI Investments Inc. during the first quarter. The article provides detailed financial metrics for ORLY, including a market cap of $74.34 billion, a P/E ratio of 29.31, and a net margin of 14.30%. It also details recent insider transactions where CEO Brad W. Beckham sold 13,635 shares at an average price of $95.00 and SVP Philip M. Hopper sold 3,700 shares at $94.60. The text concludes by promoting MarketBeat's proprietary stock reports and suggesting alternative investment opportunities in sectors like AI and semiconductors.