O'Reilly Automotive, Inc. stock research
FY2024 Q3
O'Reilly Automotive (ORLY) Gross Margin — Quarter Ended Sep 30, 2024
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year, while cost of revenue was unchanged from the prior quarter and higher than a year ago. Gross margin improved sequentially and was slightly higher than the year-ago level, reflecting a favorable relationship between revenue growth and cost of revenue.
Gross margin takeaway
Quarter ended Sep 30, 2024 · FY2024 Q3
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year, while cost of revenue was unchanged from the prior quarter and higher than a year ago. Gross margin improved sequentially and was slightly higher than the year-ago level, reflecting a favorable relationship between revenue growth and cost of revenue.
- The strongest observable driver of the gross margin improvement is the combination of higher revenue and stable cost of revenue compared to the prior quarter, which allowed gross profit to grow at a faster rate than revenue.
- Compared to the immediately preceding quarter, gross margin improved as revenue increased and cost of revenue remained unchanged. Versus the same quarter one year earlier, gross margin was slightly higher, with revenue and cost of revenue both higher but gross profit growing more than cost of revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
51.6%
Gross profit
$2.3B
Revenue
$4.4B
Cost of revenue
$2.1B
Quarter-over-quarter change
+0.8 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 |
|---|---|---|---|---|
| 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% |
| Sep 30, 2024 | $4.4B | $2.3B | $2.1B | 51.6% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2024
+0.8 pts
Year-over-year change
Sep 30, 2023
+0.2 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable driver of the gross margin improvement is the combination of higher revenue and stable cost of revenue compared to the prior quarter, which allowed gross profit to grow at a faster rate than revenue.
Compared to the immediately preceding quarter, gross margin improved as revenue increased and cost of revenue remained unchanged. Versus the same quarter one year earlier, gross margin was slightly higher, with revenue and cost of revenue both higher but gross profit growing more than cost of revenue.
Monitor whether cost of revenue remains stable relative to revenue in future quarters, as any change could affect gross margin trends.