Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at O'Reilly (NASDAQ:ORLY) and the best and worst performers in the auto parts retailer industry.
Cars are complex machines that need maintenance and occasional repairs, and auto parts retailers cater to the professional mechanic as well as the do-it-yourself (DIY) fixer. Work on cars may entail replacing fluids, parts, or accessories, and these stores have the parts and accessories or these jobs. While e-commerce competition presents a risk, these stores have a leg up due to the combination of broad and deep selection as well as expertise provided by sales associates. Another change on the horizon could be the increasing penetration of electric vehicles.
The 5 auto parts retailer stocks we track reported a mixed Q2. As a group, revenues beat analysts’ consensus estimates by 0.9%.
Thankfully, share prices of the companies have been resilient as they are up 6.5% on average since the latest earnings results.
O'Reilly (NASDAQ:ORLY)
Serving both the DIY customer and professional mechanic, O’Reilly Automotive (NASDAQ:ORLY) is an auto parts and accessories retailer that sells everything from fuel pumps to car air fresheners to mufflers.
O'Reilly reported revenues of $4.53 billion, up 5.9% year on year. This print was in line with analysts’ expectations, but overall, it was a slower quarter for the company with a miss of analysts’ EBITDA estimates and full-year EPS guidance slightly missing analysts’ expectations.
Brad Beckham, O’Reilly’s CEO, commented, “I would like to thank our Team of over 92,000 Professional Parts People for their tremendous hard work and commitment to providing industry-leading customer service in each of our 6,483 stores. Team O’Reilly’s dedication was reflected in our strong top-line performance this quarter with a comparable store sales increase of 4.1%, driven by solid growth in both professional and DIY. Our Team’s unwavering commitment to executing on the fundamentals of our business translated our top-line results into an 11% increase in diluted earnings per share, and we remain very confident in our Team’s ability to continue to profitably grow our business and gain share in all the markets in which we operate.”
O'Reilly pulled off the fastest revenue growth and highest full-year guidance raise, but had the weakest performance against analyst estimates of the whole group. Unsurprisingly, the stock is up 7.5% since reporting and currently trades at $102.66.
Is now the time to buy O'Reilly? Access our full analysis of the earnings results here, it’s free.
Best Q2: Monro (NASDAQ:MNRO)
Started as a single location in Rochester, New York, Monro (NASDAQ:MNRO) provides common auto services such as brake repairs, tire replacements, and oil changes.
Monro reported revenues of $301 million, up 2.7% year on year, outperforming analysts’ expectations by 1.7%. The business had an exceptional quarter with a beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.
Monro delivered the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 7.7% since reporting. It currently trades at $17.59.
Is now the time to buy Monro? Access our full analysis of the earnings results here, it’s free.
Weakest Q2: Advance Auto Parts (NYSE:AAP)
Founded in Virginia in 1932, Advance Auto Parts (NYSE:AAP) is an auto parts and accessories retailer that sells everything from carburetors to motor oil to car floor mats.
Advance Auto Parts reported revenues of $2.01 billion, down 7.7% year on year, exceeding analysts’ expectations by 1%. Still, it was a slower quarter as it posted full-year EPS guidance missing analysts’ expectations and a significant miss of analysts’ EBITDA estimates.
Advance Auto Parts delivered the slowest revenue growth and weakest full-year guidance update in the group. As expected, the stock is down 3.3% since the results and currently trades at $59.75.
Read our full analysis of Advance Auto Parts’s results here.
AutoZone (NYSE:AZO)
Aiming to be a one-stop shop for the DIY customer, AutoZone (NYSE:AZO) is an auto parts and accessories retailer that sells everything from car batteries to windshield wiper fluid to brake pads.
AutoZone reported revenues of $4.46 billion, up 5.4% year on year. This number surpassed analysts’ expectations by 1.1%. However, it was a slower quarter as it produced a miss of analysts’ EBITDA estimates and a slight miss of analysts’ gross margin estimates.
The stock is up 8.1% since reporting and currently trades at $4,140.
Read our full, actionable report on AutoZone here, it’s free.
Genuine Parts (NYSE:GPC)
Largely targeting the professional customer, Genuine Parts (NYSE:GPC) sells auto and industrial parts such as batteries, belts, bearings, and machine fluids.
Genuine Parts reported revenues of $6.16 billion, up 3.4% year on year. This print beat analysts’ expectations by 0.9%. It was a satisfactory quarter as it also produced an impressive beat of analysts’ gross margin estimates.
The stock is up 12.4% since reporting and currently trades at $139.25.
Read our full, actionable report on Genuine Parts here, it’s free.
Market Update
Thanks to the Fed’s series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% in November), and a notable surge followed Donald Trump’s presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. The path forward holds both optimism and caution as new policies take shape.
Want to invest in winners with rock-solid fundamentals? Check out our Strong Momentum Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.