O'Reilly Automotive, Inc. stock research
FY2024 Q2
O'Reilly Automotive (ORLY) Gross Margin — Quarter Ended Jun 30, 2024
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year, but gross margin weakened slightly due to a proportionally larger increase in cost of revenue.
Gross margin takeaway
Quarter ended Jun 30, 2024 · FY2024 Q2
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year, but gross margin weakened slightly due to a proportionally larger increase in cost of revenue.
- The primary observable driver is the faster growth in cost of revenue relative to revenue, which compressed the gross margin.
- Compared to the prior quarter, gross margin edged lower; versus the same quarter a year ago, it was also lower. Revenue and gross profit were higher in both comparisons.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
50.7%
Gross profit
$2.2B
Revenue
$4.3B
Cost of revenue
$2.1B
Quarter-over-quarter change
-0.4 pts
Year-over-year change
-0.5 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 |
|---|---|---|---|---|
| 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% |
| Jun 30, 2024 | $4.3B | $2.2B | $2.1B | 50.7% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2024
-0.4 pts
Year-over-year change
Jun 30, 2023
-0.5 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The primary observable driver is the faster growth in cost of revenue relative to revenue, which compressed the gross margin.
Compared to the prior quarter, gross margin edged lower; versus the same quarter a year ago, it was also lower. Revenue and gross profit were higher in both comparisons.
Monitor the trend in cost of revenue growth relative to revenue growth in upcoming quarters.