O'Reilly Automotive (ORLY) is expected to report a "resilient" Q2 that reinforces its long-term earnings power and brings market focus back to its fundamentals, UBS Securities said in a note Thursday.

The investment firm forecasts earnings per share of $0.86, in-line with estimates, and same-store sales growth of 6%, compared with consensus of 5.4%. Stronger sales would reflect continued pricing benefits and market share gains across the company's "commercial" and do-it-yourself businesses, the note said.

Operating costs are expected to become more manageable, with selling, general and administrative expenses per store forecast to rise 5% in the quarter before moderating in H2. Improving productivity and slower expense growth could support stronger margins, analysts said.

The firm said lower-cost inventory should provide an additional gross-profit benefit while improving customer transactions could offset slower pricing growth.

O'Reilly may raise its full-year earnings guidance of $3.15 to $3.25 per share by $0.05 to $0.10 following the results, according to the note.

UBS Securities has a buy rating on O'Reilly Automotive, with a price target of $120.

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