O'Reilly Automotive, Inc. stock research
FY2022 Q2
O'Reilly Automotive (ORLY) Gross Margin — Quarter Ended Jun 30, 2023
For the quarter, revenue, gross profit, and cost of revenue all increased compared to both the prior quarter and the same quarter last year. Gross margin improved slightly from the prior quarter but declined from the year-ago period, reflecting a shift in the relationship between revenue and cost of revenue.
Gross margin takeaway
Quarter ended Jun 30, 2023 · FY2022 Q2
For the quarter, revenue, gross profit, and cost of revenue all increased compared to both the prior quarter and the same quarter last year. Gross margin improved slightly from the prior quarter but declined from the year-ago period, reflecting a shift in the relationship between revenue and cost of revenue.
- The strongest observable driver is the relative growth rates of revenue and cost of revenue. Sequentially, revenue grew at a slightly faster pace than cost of revenue, yielding a marginal gross margin improvement. Year-over-year, cost of revenue increased at a higher rate than revenue, leading to a gross margin decline.
- Compared to the prior quarter, gross margin was higher. Compared to the same quarter one year earlier, gross margin was lower.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
51.3%
Gross profit
$2.1B
Revenue
$4.1B
Cost of revenue
$2.0B
Quarter-over-quarter change
+0.3 pts
Year-over-year change
-1.4 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% |
| Jun 30, 2023 | $4.1B | $2.1B | $2.0B | 51.3% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2023
+0.3 pts
Year-over-year change
Jun 30, 2021
-1.4 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable driver is the relative growth rates of revenue and cost of revenue. Sequentially, revenue grew at a slightly faster pace than cost of revenue, yielding a marginal gross margin improvement. Year-over-year, cost of revenue increased at a higher rate than revenue, leading to a gross margin decline.
Compared to the prior quarter, gross margin was higher. Compared to the same quarter one year earlier, gross margin was lower.
Monitor the ratio of cost of revenue to revenue, as its change directly drives gross margin movement.