11:54 AM EDT, 07/25/2024 (MT Newswires) -- O'Reilly Automotive's (ORLY) Q2 financial results fell short of market estimates, and the extent of its earnings and margin miss came as a "surprise," Wedbush Securities said Thursday.

Late Wednesday, the aftermarket car parts retailer reported Q2 earnings of $10.55 per diluted share on revenue of $4.27 billion, both missing market expectations. Comparable sales grew 2.3%, which Wedbush said was below the market consensus of 3% growth.

"While most investors expected a comp miss, the extent of the margin and EPS miss came as a surprise," Wedbush analysts, including Seth Basham, said in a note to clients.

In addition to weather-related headwinds, O'Reilly and the industry are likely seeing ongoing pressure in discretionary categories, while motorists are "increasingly deferring" maintenance in response macroeconomic pressures, potentially weighing more negatively on the company's do-it-yourself business, the analysts said.

O'Reilly is likely continuing to gain market share from Genuine Parts ( GPC ) and others, according to the note.

Wedbush maintained its neutral rating on the O'Reilly stock, with a $1,100 price target.

The company's shares were up 5% in recent trading.

Price: 1099.01, Change: +48.30, Percent Change: +4.60