O’Reilly Automotive, Inc. (ORLY) Unearths Clues To Earnings Performance

49 days have passed by since the last earnings report for O’Reilly Automotive, Inc. (NASDAQ:ORLY) and the new quarterly results look set to arrive in 42 days. The shares of ORLY at the moment are trading at a volume of 0.69 million, which compares with its normal daily standard volume of 563254 shares. This has led to the shares of the company advancing by 1.26%, currently exchanging hands at $407.68 a share. ORLY stock has been up by $6.95 (-1.68%) ever since it reached its 52-week high of $414.63 back in April 16, 2019. It has progressed above its 50-day moving average of $382.24 and is up 6.21% over the past week. The stock has added 0.8% since the last one arrived so the question here is that will the upbeat trend in that time frame continue leading up to its next earnings release, or is the ORLY share price due for a correction?

O’Reilly Automotive, Inc. (ORLY) Forecasts And Latest Quarter Earnings

Ahead of their fiscal third-quarter to be released on Wednesday, Oct 23, 2019, 21 analysts who are covering the company are estimating that it will record a profit of $4.79 per share, with analysts having different outlooks from $4.72 to $4.9. The current agreed outlook, when compared to the profit recorded last year, is at $4.5 a share, thus an increase of 6.44% is expected. The profit view for a complete financial year for O’Reilly Automotive, Inc. is expected to be around $17.55 in current year, a growth of nearly 9.01% from last year which was $16.1.

Analyzing The Earnings History Of O’Reilly Automotive, Inc. (NASDAQ:ORLY)

In the past few years, the ORLY stock has been known to miss the Wall Street’s earnings projection. The company missed 41% of the time, according to the data pulled on their earnings, was able to meet predictions on 0 occasions and topped expectations 7 times. Looking at the past trend, the price of O’Reilly Automotive, Inc. shares had risen following the release of their earnings in 26 of the last 38 quarters.

Looking back, here is how O’Reilly Automotive, Inc. (ORLY) stock reacted to earnings misses and beats. It gave investors reason to cast doubts with the price going down after 2 of the last four earnings reports. The shares of O’Reilly Automotive, Inc. recorded -5.17%, -4.21%, 3.35% and 0.53%, respectively, on the first day of past earnings releases. After a week of earnings reports, the changes were -3.97%, -5.84%, 6.73% and -0.64%. Their post-earnings price movements have resulted in an average decrease of -1.38% and an average decrease of -0.93% in O’Reilly Automotive, Inc. on next day and 7th day, sequentially. ORLY’s one month stock performance led to its shares rising by 7.76% with a return of 17.79% witnessed over the last 52 weeks.

O’Reilly Automotive, Inc. (ORLY) Post Earnings Announcement Drift (PEAD)

Back on July 24, 2019, O’Reilly Automotive, Inc. (NASDAQ:ORLY) released its Q2 results, in which it recorded EPS of $4.51 that fell short of consensus estimates of $4.67. After the earnings were reported, the price of ORLY stock kicked off the session at $375.22 and remained in a range of $385.51 to $400.99 on the first day. The shares were priced at $376 at the close with a total volume of shares being 1568749.

On April 24, 2019, the Q1 earnings report was disclosed with EPS of $4.05. This was same as the estimation of $4.05 per share. The stock price range of ORLY was between $380.43 and $382.2 on the first-day post announcement, after opening the day at $367.12. The session came to close at $380 and there was a total volume of 2223077 shares.

February 06, 2019 was the day when its Q4 results were unveiled. The earnings came in at $3.72, missing the projected $3.75 per share. The very next day, ORLY stock opened at $353.7 while staying in a range of $361.6 to $366.18. At the end, it moved to $365.46 a total volume of shares been 1760124.

In the year-ago Q3 earnings on October 24, 2018, the company saw profit per share of $4.5. That was better than the $4.31 analysts had expected. O’Reilly Automotive, Inc. share price started at $314.14 on the first full trading day post-earning and then exchanged hands between $318 and $334 throughout the session. The closing price of $324.55 came on the back of 1955760 shares in volume.