Market Overview

JP Morgan Says Mild Winter to Blame for Below Expected Results from AutoZone and O'Reilly

Share:
Related AZO
Do Higher Capital Expenditures Mean Higher Share Prices For Retailers?
Top Performing Industries For March 27, 2015
Meet 4 IBD 50 Companies Reporting Earnings This Week (Investor's Business Daily)

JP Morgan has published a research report on auto parts retailers AutoZone (NYSE: AZO) and O'Reilly Automotive (NASDAQ: ORLY) commenting on company guidance and comps after market close on Tuesday.

In the report, JP Morgan writes, "ORLY lowered 2Q comp guidance after the market close on Tuesday, June 26th to 2.0-2.5% from 3.0-5.0% previously. ORLY expects 2Q EPS to be at the low end of the previously announced range of $1.13 to $1.17. The lowered comp guidance reflects a slow start to April due to a pullforward in demand from the early Spring weather and below expectation comps in June following an improvement in May. ORLY's 2Q results will be released on Wednesday, July 25th. We believe the mild winter, recently improved new car sales trends, and less tailwinds around vehicle age are responsible for the below plan results. Regionally, the East Coast appears to be having the slowest trends due to the mild winter, where ORLY has little exposure (vs. AAP's high exposure). This is likely to raise questions on heritage ORLY comps and whether or not the lift from CSK has peaked."

O'Reilly Automotive is currently trading down 17.16% from yesterday's $96.44 closing price while AutoZone is trading down 3.95% from yesterday's $376.49 closing price.

Latest Ratings for AZO

DateFirmActionFromTo
Apr 2015BarclaysMaintainsOverweight
Mar 2015Argus ResearchUpgradesHoldBuy
Mar 2015CitigroupMaintainsBuy

View More Analyst Ratings for AZO
View the Latest Analyst Ratings

Posted-In: JP MorganAnalyst Color Reiteration Analyst Ratings

 

Related Articles (ORLY + AZO)

Around the Web, We're Loving...