O'Reilly Automotive, Inc. stock research
FY2024 Q4
O'Reilly Automotive (ORLY) Gross Margin — Quarter Ended Dec 31, 2024
Revenue, gross profit, and cost of revenue all decreased sequentially but increased year over year. Gross margin weakened slightly from the prior quarter and remained stable compared to the same quarter last year.
Gross margin takeaway
Quarter ended Dec 31, 2024 · FY2024 Q4
Revenue, gross profit, and cost of revenue all decreased sequentially but increased year over year. Gross margin weakened slightly from the prior quarter and remained stable compared to the same quarter last year.
- The sequential decline in gross margin was associated with a larger proportional decrease in revenue relative to cost of revenue. Both revenue and cost grew at similar rates year over year, leaving gross margin unchanged.
- Compared to the prior quarter, gross profit decreased alongside revenue, while the cost reduction was proportionally smaller, resulting in a slightly lower margin. Year-over-year, gross profit and revenue both increased, with cost moving in line, keeping gross margin level.
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
-0.0 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, 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% |
| Dec 31, 2024 | $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
Sep 30, 2024
-0.3 pts
Year-over-year change
Dec 31, 2023
-0.0 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The sequential decline in gross margin was associated with a larger proportional decrease in revenue relative to cost of revenue. Both revenue and cost grew at similar rates year over year, leaving gross margin unchanged.
Compared to the prior quarter, gross profit decreased alongside revenue, while the cost reduction was proportionally smaller, resulting in a slightly lower margin. Year-over-year, gross profit and revenue both increased, with cost moving in line, keeping gross margin level.
Monitor the relationship between revenue and cost of revenue in upcoming periods, as the sequential margin change was driven by a faster revenue decline.