O'Reilly Auto Parts vs AutoZone
This page compares O'Reilly Auto Parts and AutoZone, examining business models, financial performance, and market context in a neutral, accessible way. It outlines how each company operates, earns revenue, and positions itself within the automotive parts sector for readers seeking informational context. Educational content, not financial advice.
This page compares O'Reilly Auto Parts and AutoZone, examining business models, financial performance, and market context in a neutral, accessible way. It outlines how each company operates, earns rev...
Why It's Moving
O'Reilly Automotive Targets 225-235 New Stores in 2026 Amid Analyst Optimism for 14% Upside
- O'Reilly projects opening 225-235 new stores in 2026 and expects revenues between $18.7-$19 billion, representing growth from $17.8 billion in 2025, as comparable sales momentum accelerates
- Wall Street consensus shows 23 Buy ratings versus just 1 Sell, with the median $108 price target implying 14% upside from current levels, though fair value estimates suggest the stock could be undervalued by as much as 12%
- The company is increasing average inventory per store by 5% and diversifying sourcing away from Chinese products to mitigate tariff pressures, signaling management confidence in sustaining margins despite wage and occupancy cost headwinds
AutoZone's Q2 Earnings Spark Selloff Amid Margin Squeeze Despite Sales Growth
- Net sales rose 8.1% to $4.27B, missing estimates by $76M, while EPS of $27.63 edged out expectations but trailed last year's $28.29, signaling cost headwinds outpacing revenue gains.
- Gross margins contracted 137 basis points to 52.5% and operating margins fell to 16.3%, with net income dipping to $468.9M, raising doubts on near-term earnings quality.
- Domestic same-store sales climbed 3.4% and international growth hit double digits, underscoring demand strength but failing to offset investor focus on margin erosion.
O'Reilly Automotive Targets 225-235 New Stores in 2026 Amid Analyst Optimism for 14% Upside
- O'Reilly projects opening 225-235 new stores in 2026 and expects revenues between $18.7-$19 billion, representing growth from $17.8 billion in 2025, as comparable sales momentum accelerates
- Wall Street consensus shows 23 Buy ratings versus just 1 Sell, with the median $108 price target implying 14% upside from current levels, though fair value estimates suggest the stock could be undervalued by as much as 12%
- The company is increasing average inventory per store by 5% and diversifying sourcing away from Chinese products to mitigate tariff pressures, signaling management confidence in sustaining margins despite wage and occupancy cost headwinds
AutoZone's Q2 Earnings Spark Selloff Amid Margin Squeeze Despite Sales Growth
- Net sales rose 8.1% to $4.27B, missing estimates by $76M, while EPS of $27.63 edged out expectations but trailed last year's $28.29, signaling cost headwinds outpacing revenue gains.
- Gross margins contracted 137 basis points to 52.5% and operating margins fell to 16.3%, with net income dipping to $468.9M, raising doubts on near-term earnings quality.
- Domestic same-store sales climbed 3.4% and international growth hit double digits, underscoring demand strength but failing to offset investor focus on margin erosion.
Investment Analysis
Pros
- O'Reilly Auto Parts has shown consistent earnings growth, reporting a 4% increase in the current year with an average annual growth rate of 6% over the past five years.
- The company maintains a broad product offering including new and remanufactured automotive hard parts, appealing to both professional installers and DIY customers.
- Employee and customer sentiment ratings are relatively strong, with competitive CEO and culture ratings compared to peers.
Considerations
- Inventory availability issues have been noted, with some customers reporting the need to wait for parts to be ordered, potentially impacting service speed.
- Despite steady growth, stock price movements have been relatively quiet recently, suggesting limited near-term catalysts driving significant investor interest.
- Competition from other auto parts retailers with strong private label brands and pricing strategies may pressure O'Reilly's market position.
AutoZone
AZO
Pros
- AutoZone has differentiated itself through competitive pricing and a well-known private label brand, Duralast, which supports customer loyalty.
- The company has a reputation for a cleaner, more organized store experience, which attracts a loyal customer base.
- AutoZone benefits from focused retail execution, leveraging its founder's background to enhance store-level operations and customer satisfaction.
Considerations
- Employee and customer sentiment ratings are lower compared to O'Reilly Auto Parts, indicating potential challenges in culture or service perception.
- Product quality concerns with some private label parts have been reported, which may affect customer trust and repeat business.
- AutoZone faces strong competitive pressure from retailers like O'Reilly who balance professional and DIY customer segments more evenly.
Related Market Insights
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Related Market Insights
The Great Automotive Shift: Why Legacy Carmakers Are Finally Getting Serious
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O'Reilly Auto Parts (ORLY) Next Earnings Date
O'Reilly Automotive (ORLY) is scheduled to report its next earnings on or around April 22-28, 2026, with estimates converging on April 22, 2026 based on historical patterns of late-April Q1 releases. This report will cover the first quarter of 2026 (Q1 2026) results. Investors should monitor official company announcements for the precise date and time, as it remains unconfirmed post the recent Q4 2025 release in early February.
AutoZone (AZO) Next Earnings Date
AutoZone's next earnings date is estimated for May 26, 2026, following the recent Q2 2026 report released on March 3, 2026. This upcoming release will cover Q3 2026 results, aligning with the company's historical pattern of late-May announcements for that quarter. Investors should monitor for official confirmation, as the precise date remains tentative.
O'Reilly Auto Parts (ORLY) Next Earnings Date
O'Reilly Automotive (ORLY) is scheduled to report its next earnings on or around April 22-28, 2026, with estimates converging on April 22, 2026 based on historical patterns of late-April Q1 releases. This report will cover the first quarter of 2026 (Q1 2026) results. Investors should monitor official company announcements for the precise date and time, as it remains unconfirmed post the recent Q4 2025 release in early February.
AutoZone (AZO) Next Earnings Date
AutoZone's next earnings date is estimated for May 26, 2026, following the recent Q2 2026 report released on March 3, 2026. This upcoming release will cover Q3 2026 results, aligning with the company's historical pattern of late-May announcements for that quarter. Investors should monitor for official confirmation, as the precise date remains tentative.
Which Baskets Do They Appear In?
Automotive
Find a car stock to fuel your investment strategy 🏎. This collection brings together carefully selected automotive companies, from traditional manufacturers to electric vehicle pioneers, curated by professional analysts to help you navigate this transformative industry.
Published: May 14, 2025
Explore BasketWhich Baskets Do They Appear In?
Automotive
Find a car stock to fuel your investment strategy 🏎. This collection brings together carefully selected automotive companies, from traditional manufacturers to electric vehicle pioneers, curated by professional analysts to help you navigate this transformative industry.
Published: May 14, 2025
Explore BasketBuy ORLY or AZO in Nemo
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