As the Q4 earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers in the auto parts retailer industry, including O'Reilly (NASDAQ: ORLY) and its peers.
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 slower Q4. As a group, revenues beat analysts’ consensus estimates by 0.6% while next quarter’s revenue guidance was in line.
Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 7.2% 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 $4.10 billion, up 6.9% year on year. This print exceeded analysts’ expectations by 1.2%. Despite the top-line beat, it was still a slower quarter for the company with full-year EPS guidance missing analysts’ expectations.
Brad Beckham, O’Reilly’s CEO, commented, “We are pleased to report a strong finish to 2024 in the fourth quarter, highlighted by 4.4% growth in comparable store sales, driven by solid growth in both professional and DIY. Our Team is relentlessly focused on executing our industry-leading model at a high level, which we believe continues to generate market share gains on both sides of our business. I would like to take this opportunity to commend Team O’Reilly on their performance in the fourth quarter and thank each of you for your hard work and continued commitment to providing excellent customer service.”
O'Reilly pulled off the fastest revenue growth but had the weakest full-year guidance update of the whole group. The results were likely priced in, however, and the stock is flat since reporting. It currently trades at $1,349.
Is now the time to buy O'Reilly? Access our full analysis of the earnings results here, it’s free.
Best Q4: 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 $2.00 billion, flat year on year, outperforming analysts’ expectations by 2.9%. The business had a satisfactory quarter with full-year EPS guidance exceeding analysts’ expectations,
Advance Auto Parts achieved the biggest analyst estimates beat and highest full-year guidance raise among its peers. Although it had a fine quarter compared to its peers, the market seems unhappy with the results as the stock is down 17.5% since reporting. It currently trades at $37.90.
Is now the time to buy Advance Auto Parts? Access our full analysis of the earnings results here, it’s free.
Weakest Q4: 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 $305.8 million, down 3.7% year on year, falling short of analysts’ expectations by 1.5%. It was a disappointing quarter as it posted a significant miss of analysts’ EBITDA and EPS estimates.
Monro delivered the weakest performance against analyst estimates and slowest revenue growth in the group. As expected, the stock is down 22.7% since the results and currently trades at $16.99.
Read our full analysis of Monro’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 $3.95 billion, up 2.4% year on year. This result lagged analysts' expectations by 0.8%. It was a slower quarter as it also logged a miss of analysts’ EBITDA and EPS estimates.
The stock is up 4.5% since reporting and currently trades at $3,634.
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 $5.77 billion, up 3.3% year on year. This number beat analysts’ expectations by 1%. More broadly, it was a mixed quarter as it also produced a decent beat of analysts’ gross margin estimates but full-year EPS guidance missing analysts’ expectations.
The stock is flat since reporting and currently trades at $124.46.
Read our full, actionable report on Genuine Parts here, it’s free.
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