RBC Capital analysts provided their outlook on O'Reilly Automotive, Inc. (NASDAQ:ORLY) ahead of the upcoming Q4 results, expecting net sales growth of 6.2% (vs. Street’s 6.4%), comp sales growth of 4.2% (vs. Street’s 4.5%), and EPS of $7.58 (vs. Street’s $7.74).
The analysts believe DIY trends have decelerated sequentially from Q3, but expect continued professional strength will more than offset this. According to the analysts, the risk for the quarter lies with the guide, noting they would not be surprised if management conservatively guided 2023 EPS below consensus. This could cause a negative knee-jerk reaction, but at this point management's over-delivery track record should be well understood.
The analysts reiterated their Outperform rating and $895 price target, mentioning that they would be buyers in the event of any weakness.