O'Reilly Automotive, Inc. stock research
FY2024 Q1
O'Reilly Automotive (ORLY) Gross Margin — Quarter Ended Mar 31, 2024
Revenue grew while cost of revenue increased at a slower pace compared to the same quarter last year, resulting in higher gross profit and an improved gross margin. Sequentially, revenue rose but gross profit remained similar, leading to a slightly lower gross margin.
Gross margin takeaway
Quarter ended Mar 31, 2024 · FY2024 Q1
Revenue grew while cost of revenue increased at a slower pace compared to the same quarter last year, resulting in higher gross profit and an improved gross margin. Sequentially, revenue rose but gross profit remained similar, leading to a slightly lower gross margin.
- The strongest observable driver was the relative growth rates of revenue and cost of revenue; revenue expanded more quickly than cost year over year, supporting gross margin expansion.
- Gross margin was slightly lower than the immediately preceding quarter but higher than the same quarter one year earlier.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
51.2%
Gross profit
$2.0B
Revenue
$4.0B
Cost of revenue
$1.9B
Quarter-over-quarter change
-0.2 pts
Year-over-year change
+0.2 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% |
| Sep 30, 2023 | $4.2B | $2.2B | $2.0B | 51.4% |
| Mar 31, 2024 | $4.0B | $2.0B | $1.9B | 51.2% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2023
-0.2 pts
Year-over-year change
Mar 31, 2023
+0.2 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable driver was the relative growth rates of revenue and cost of revenue; revenue expanded more quickly than cost year over year, supporting gross margin expansion.
Gross margin was slightly lower than the immediately preceding quarter but higher than the same quarter one year earlier.
Monitor the relationship between revenue growth and cost of revenue changes, as gross margin has shown mixed movement quarter over quarter.