As the Q1 earnings season wraps, let’s dig into this quarter’s best and worst performers in the auto parts retailer industry, 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 Q1. As a group, revenues beat analysts’ consensus estimates by 1%.

Luckily, auto parts retailer stocks have performed well with share prices up 24.4% on average 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 $4.14 billion, up 4% year on year. This print fell short of analysts’ expectations by 0.9%. Overall, it was a mixed quarter for the company with full-year EPS guidance exceeding analysts’ expectations but a miss of analysts’ EBITDA estimates.

Brad Beckham, O’Reilly’s CEO, commented, “We are pleased to report a solid start to 2025, highlighted by a 3.6% comparable store sales increase, which was at the high end of our expectations for the quarter. Our comparable store sales increase was comprised of solid growth in both professional and DIY, which grew mid-single digit and low-single digit, respectively, in the first quarter. We are confident in the strength of the fundamental demand drivers in our business, and our Team’s strong execution continues to generate share gains. I would like to express my appreciation to each of our over 93,000 Team Members for their hard work and unwavering dedication to our business and customers.”

O'Reilly delivered the weakest performance against analyst estimates and weakest full-year guidance update of the whole group. The market was likely pricing in the results, and the stock is flat since reporting. It currently trades at $91.25.

Is now the time to buy O'Reilly? Access our full analysis of the earnings results here, it’s free.

Best Q1: Advance Auto Parts (NYSE: AAP)

Founded in Virginia in 1932, Advance Auto Parts (NYSE: AAP) is an auto parts and accessories retailer that sells everything from carburetors to motor oil to car floor mats.

Advance Auto Parts reported revenues of $2.58 billion, down 6.8% year on year, outperforming analysts’ expectations by 3.1%. The business had a strong quarter with an impressive beat of analysts’ EPS estimates and full-year EPS guidance exceeding analysts’ expectations.

Advance Auto Parts delivered the biggest analyst estimates beat and highest full-year guidance raise among its peers. The market seems happy with the results as the stock is up 98.2% since reporting. It currently trades at $62.

Is now the time to buy Advance Auto Parts? Access our full analysis of the earnings results here, it’s free.

Slowest Q1: 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 $295 million, down 4.9% year on year, exceeding analysts’ expectations by 1.3%. Still, it was a softer quarter as it posted a significant miss of analysts’ EBITDA estimates and a significant miss of analysts’ gross margin estimates.

Interestingly, the stock is up 19.2% since the results and currently trades at $15.22.

Read our full analysis of Monro’s results here.

Genuine Parts (NYSE: GPC)

Largely targeting the professional customer, Genuine Parts (NYSE: GPC) sells auto and industrial parts such as batteries, belts, bearings, and machine fluids.

Genuine Parts reported revenues of $5.87 billion, up 1.4% year on year. This result beat analysts’ expectations by 0.5%. Overall, it was a strong quarter as it also put up a solid beat of analysts’ EBITDA estimates and an impressive beat of analysts’ gross margin estimates.

The stock is up 8.7% since reporting and currently trades at $121.51.

Read our full, actionable report on Genuine Parts here, it’s free.

AutoZone (NYSE: AZO)

Aiming to be a one-stop shop for the DIY customer, AutoZone (NYSE: AZO) is an auto parts and accessories retailer that sells everything from car batteries to windshield wiper fluid to brake pads.

AutoZone reported revenues of $4.46 billion, up 5.4% year on year. This number surpassed analysts’ expectations by 1.1%. Aside from that, it was a slower quarter as it logged a miss of analysts’ EBITDA estimates and a slight miss of analysts’ gross margin estimates.

AutoZone delivered the fastest revenue growth among its peers. The stock is down 3.5% since reporting and currently trades at $3,697.

Read our full, actionable report on AutoZone here, it’s free.

Market Update

As a result of the Fed’s rate hikes in 2022 and 2023, inflation has come down from frothy levels post-pandemic. The general rise in the price of goods and services is trending towards the Fed’s 2% goal as of late, which is good news. The higher rates that fought inflation also didn't slow economic activity enough to catalyze a recession. So far, soft landing. This, combined with recent rate cuts (half a percent in September 2024 and a quarter percent in November 2024) have led to strong stock market performance in 2024. The icing on the cake for 2024 returns was Donald Trump’s victory in the U.S. Presidential Election in early November, sending major indices to all-time highs in the week following the election. Still, debates around the health of the economy and the impact of potential tariffs and corporate tax cuts remain, leaving much uncertainty around 2025.

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