O’Reilly Automotive stokes more bullishness on Wall Street after ‘stellar' quarter
jetcityimage/iStock Editorial via Getty Images

OâReilly Automotive (NASDAQ:ORLY) stock drove to a strong earnings beat on Wednesday evening, prompting increased bullishness on the name along Wall Street.
For the third quarter, the company posted strong beats on top and bottom lines, with comparable sales surging 7.6% from the prior year. Based upon that strength, management moved up full-year forecasts. 
Management now anticipates GAAP EPS to be in the range of $32.35 to $32.85, raised from the prior view of $31.25 to $31.75 and above the consensus of $31.86. Total revenue is now anticipated to fall in a range of $14.1B to $14.3B, increased from a prior forecast of between $14B and $14.3B.
MKM Partners analyst David Bellinger called the report ânothing short of stellarâ and indicated it surpassed his expectations in nearly all aspects.
âA sequential rebound in DIY into the positive low-single digits coincided with the pro business up double digits,â he noted. âWe see a much more favorable outlook for the stock into year-end, now that the company's guide down last quarter is well in the rearview.â
Wedbush analyst Seth Basham was likewise impressed, prompting him to raise estimates alongside the companyâs elevated guide. He hiked his price target to $820 from a prior $660 on Thursday.
âAfter âfreezingâ with the spike in inflation and interest rates earlier this year, we
believe many consumers are now deciding to invest in maintaining their vehicles rather than purchase new (or late model used) ones, benefiting auto parts retailers after a lull in sales in 2Q,â he advised clients. âThis pattern echoes that of past economic downturns as we have previously reported, and analogies from past economic downturns portend continued industry strength.â
That said, Basham retained preference for AutoZone (AZO) based upon valuation concerns.
Shares of OâReilly Automotive (ORLY) rose 5.09% on the market open on Thursday.
Read more on why Evercore prefers OâReilly in the auto parts space.