Wrapping up Q2 earnings, we look at the numbers and key takeaways for the auto parts retailer stocks, including O'Reilly (NASDAQ:ORLY) and its peers.

Cars are complex machines that need maintenance and occasional repairs, and auto parts retailers cater to the professional mechanic as well as the do-it-yourself (DIY) fixer. Work on cars may entail replacing fluids, parts, or accessories, and these stores have the parts and accessories or these jobs. While e-commerce competition presents a risk, these stores have a leg up due to the combination of broad and deep selection as well as expertise provided by sales associates. Another change on the horizon could be the increasing penetration of electric vehicles.

The 5 auto parts retailer stocks we track reported a mixed Q2. As a group, revenues missed analysts’ consensus estimates by 0.7%.

Valuation multiples for many growth stocks have not yet reverted to their early 2021 highs, but the market was optimistic at the end of 2023 due to cooling inflation. This year has been a different story as mixed inflation signals have led to market volatility, and while some auto parts retailer stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 4.1% since the latest earnings results.

O'Reilly (NASDAQ:ORLY)

Serving both the DIY customer and professional mechanic, O’Reilly Automotive (NASDAQ:ORLY) is an auto parts and accessories retailer that sells everything from fuel pumps to car air fresheners to mufflers.

O'Reilly reported revenues of $4.27 billion, up 5% year on year. This print fell short of analysts’ expectations by 1.1%. Overall, it was a weaker quarter for the company with underwhelming earnings guidance for the full year and a miss of analysts’ gross margin estimates.

O'Reilly scored the fastest revenue growth but had the weakest full-year guidance update of the whole group. Unsurprisingly, the stock is up 8.1% since reporting and currently trades at $1,138.

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Best Q2: Monro (NASDAQ:MNRO)

Started as a single location in Rochester, New York, Monro (NASDAQ:MNRO) provides common auto services such as brake repairs, tire replacements, and oil changes.

Monro reported revenues of $293.2 million, down 10.3% year on year, in line with analysts’ expectations. It was a very strong quarter for the company with an impressive beat of analysts’ gross margin estimates.

Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 1.9% since reporting. It currently trades at $25.55.