O'Reilly Automotive tracks higher after earnings shine
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O'Reilly Automotive (ORLY
+2.4%) traded higher on Thursday after the company's strong earnings report and outlook for 2022 were well received by investors.
UBS analyst Michael Lasser said the key pullouts from the report were that ORLY's 14.5% comparable sales mark was above the firm's estimate of 8.0% and above the consensus estimate. ORLY also stated its operating margin increased due to gross margin expansion and SG&A leverage of 7.3%. Also of importance, inventory levels are noted to have been up modestly, but well below the sales growth rate of 16% Y/Y.
Lasser suggested that ORLYâs commentary about price investments are likely to take center stage, but does not feel the news should overshadow the retailer's strong Q4 results.
UBS kept a Buy rating on ORLY and price target of $790 vs. the 52-week trading range of $428.79 to $710.86.
Dig further into the O'Reilly Automotive earnings topper.