O'Reilly Automotive, Inc. stock research
FY2023 Q1
O'Reilly Automotive (ORLY) Gross Margin — Quarter Ended Mar 31, 2023
Revenue and cost of revenue both increased year over year, while gross profit rose at a slower pace, leading to a lower gross margin compared to the prior year. Sequentially, gross margin was relatively stable with a slight improvement.
Gross margin takeaway
Quarter ended Mar 31, 2023 · FY2023 Q1
Revenue and cost of revenue both increased year over year, while gross profit rose at a slower pace, leading to a lower gross margin compared to the prior year. Sequentially, gross margin was relatively stable with a slight improvement.
- The year-over-year decline in gross margin is the most notable observable trend, as cost growth outpaced revenue growth in the comparison. A relatively stable sequential gross margin suggests cost and revenue moved in tandem more closely from the prior quarter.
- Gross margin was slightly higher than the preceding quarter but lower than the same quarter one year earlier. Revenue and cost of revenue both increased compared with both prior periods.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
51.0%
Gross profit
$1.9B
Revenue
$3.7B
Cost of revenue
$1.8B
Quarter-over-quarter change
n/a
Year-over-year change
-0.8 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Mar 31, 2023 | $3.7B | $1.9B | $1.8B | 51.0% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Previous quarter unavailable
n/a
Year-over-year change
Mar 31, 2022
-0.8 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The year-over-year decline in gross margin is the most notable observable trend, as cost growth outpaced revenue growth in the comparison. A relatively stable sequential gross margin suggests cost and revenue moved in tandem more closely from the prior quarter.
Gross margin was slightly higher than the preceding quarter but lower than the same quarter one year earlier. Revenue and cost of revenue both increased compared with both prior periods.
Monitor whether cost of revenue continues to grow relative to revenue in upcoming quarters.