Genuine Parts (NYSE:GPC) Releases Earnings Results, Beats Expectations By $0.03 EPS

Genuine Parts (NYSE:GPC) issued its quarterly earnings data on Tuesday. The specialty retailer reported $2.07 EPS for the quarter, topping the consensus estimate of $2.04 by $0.03, Zacks reports. Genuine Parts had a net margin of 0.12% and a return on equity of 23.00%. The business had revenue of $6.52 billion during the quarter, compared to analyst estimates of $6.49 billion. During the same period last year, the business posted $1.98 earnings per share. Genuine Parts’s quarterly revenue was up 4.2% compared to the same quarter last year.

Here are the key takeaways from Genuine Parts’ conference call:

• Industrial remained a key growth driver, with sales up 6% and comparable sales up 5.5%; segment EBITDA rose 11% to a 13.2% margin, supported by pricing, sourcing, and cost discipline.
• Consolidated third-quarter sales increased 4.2% to $6.5 billion, while adjusted EPS rose approximately 5% to $2.07; gross margin expanded 70 basis points to 38.1%, but adjusted EBITDA margin was flat as operating-cost inflation offset these gains.
• Automotive demand remained pressured, especially in retail, by higher fuel prices, inflation, interest rates, and weaker consumer sentiment. North American Automotive EBITDA margin declined 40 basis points to 7.6%, while the company expects the Iran conflict to create $30 million-$40 million of second-half costs.
• Genuine Parts narrowed its 2026 adjusted EPS outlook to $7.50-$7.75 and expects to finish toward the lower end of the range, reflecting moderating global automotive conditions and higher freight, fuel, healthcare, and other operating expenses.
• Management said the planned separation of the automotive and industrial businesses remains on track for the first quarter of 2027, with leadership appointments completed and operational, Form 10, capital-structure, and capital-allocation work progressing toward the December investor days.

Genuine Parts Stock Up 1.0%

Shares of GPC opened at $124.78 on Thursday. Genuine Parts has a 12-month low of $90.78 and a 12-month high of $151.57. The company has a current ratio of 1.22, a quick ratio of 0.50 and a debt-to-equity ratio of 0.96. The company has a market capitalization of $17.20 billion, a PE ratio of 499.11, a price-to-earnings-growth ratio of 2.30 and a beta of 0.67. The business’s 50 day moving average is $131.70 and its 200 day moving average is $118.96.

Genuine Parts Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Friday, October 2nd. Shareholders of record on Friday, September 4th were paid a dividend of $1.0625 per share. The ex-dividend date was Friday, September 4th. This represents a $4.25 dividend on an annualized basis and a yield of 3.4%. Genuine Parts’s dividend payout ratio (DPR) is presently 1,700.00%.

Analyst Ratings Changes

Several equities analysts have commented on GPC shares. JPMorgan Chase & Co. raised their price objective on Genuine Parts from $125.00 to $137.00 and gave the company an “overweight” rating in a research report on Monday, October 12th. Truist Financial increased their price target on shares of Genuine Parts from $126.00 to $131.00 and gave the stock a “hold” rating in a research note on Tuesday. DA Davidson lifted their price target on shares of Genuine Parts from $150.00 to $170.00 and gave the company a “buy” rating in a research report on Monday, August 3rd. Raymond James Financial reissued a “strong-buy” rating and set a $165.00 price objective on shares of Genuine Parts in a research note on Wednesday, July 22nd. Finally, Evercore restated an “outperform” rating on shares of Genuine Parts in a report on Wednesday, July 22nd. One equities research analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating and five have assigned a Hold rating to the company. Based on data from MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus price target of $144.29.

About Genuine Parts

Genuine Parts Company (NYSE:GPC) is a distributor of automotive and industrial replacement parts. Its Automotive Parts Group supplies components and accessories for cars, trucks and other vehicles, serving professional repair shops, commercial customers and do-it-yourself consumers through distribution networks, stores and digital channels.

The company’s Industrial Parts Group distributes products used to maintain and repair manufacturing, commercial and other industrial equipment. Its offerings include bearings, power-transmission components, motion-control products, industrial supplies and related maintenance, repair and operations products.