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Nomura Securities Maintains a 'Neutral' on O'Reilly Automotive (ORLY); Q4 Review

February 10, 2012 11:12 AM EST
ORLY Hot Sheet
Rating Summary:
    5 Buy, 6 Hold, 0 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 20 | Down: 11 | New: 38
Nomura Securities maintains a 'Neutral' on O'Reilly Automotive (NASDAQ: ORLY) price target of $83.00.

Analyst, Aram Rubinson, said, "ORLY reported Q4 EPS of $0.93, ahead of both our projection of $0.89 and the Street at $0.86. Results were driven by better-than-expected gross margins (+100 bps versus the Street) on lower-than-expected comps (-160 bps versus the Street). Gross margin performance was tied, in part, to improved distribution and shrink expense as O’Reilly brings its superior processes and systems to the acquired CSK stores. However, the bigger drivers were product acquisition costs and a decline in promotional activity. We rate ORLY Neutral and our earnings estimates are unchanged at $4.53 and $5.48 for F2012 and F2013, respectively. We rate Advanced Auto (NYSE: AAP) shares Reduce with a PT of $54 and F2012 EPS estimates that are ~15% below consensus."

For an analyst ratings summary and ratings history on O'Reilly Automotive click here. For more ratings news on O'Reilly Automotive click here.

Shares of O'Reilly Automotive closed at $84.34 yesterday, with a 52 week range of $53.33-$85.32.


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