Benzinga | Feb 9, 2021 10:32AM EST

Earnings Preview for O'Reilly Automotive

O'Reilly Automotive (NASDAQ:ORLY) unveils its next round of earnings this Wednesday, February 10. Here is Benzinga's everything-that-matters guide for the earnings announcement.

Net Income, Earnings, And Earnings Per Share

Earnings and EPS are useful metrics of profitability. Total earnings also known as net income is equal to total revenue minus total expenses. Dividing net income by the total number of shares outstanding yields EPS.

Earnings And Revenue

O'Reilly Automotive EPS will likely be near $5.13 while revenue will be around $2.78 billion, according to analysts. In the same quarter last year, O'Reilly Automotive announced EPS of $4.25 on revenue of $2.48 billion.

What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?

Analysts who cover this company will publish forward-looking estimates of its revenue and EPS each quarter. Averaging together every EPS and revenue prediction that each analyst makes about a company in a quarter yields the "consensus estimates." A company posting earnings or revenue above or below the consensus estimate is known as an "earnings surprise" and may move the stock by a considerable margin.

If the company were to report earnings in line when it publishes results Wednesday, quarterly profit would be up 20.71%. Revenue would be up 11.96% from the same quarter last year. Here is how the company's reported EPS has compared to analyst estimates in the past:

Quarter Q3 2020 Q2 2020 Q1 2020 Q4 2020EPS Estimate 6.19 3.91 4.02 4.27EPS Actual 7.07 7.10 3.97 4.25Revenue Estimate 2.98 B 2.54 B 2.47 B 2.48 BRevenue Actual 3.21 B 3.09 B 2.48 B 2.48 B

Stock Performance

Shares of O'Reilly Automotive were trading at $452.5 as of February 08. Over the last 52-week period, shares are up 15.75%. Given that these returns are generally positive, long-term shareholders can be satisfied going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. O'Reilly Automotive is scheduled to hold the call at 11:00:00 ET and can be accessed here.