Uncovering Potential: Genuine Parts's Earnings Preview
Genuine Parts (NYSE:GPC) is gearing up to announce its quarterly earnings on Tuesday, 2025-07-22. Here's a quick overview of what investors should know before the release.
Analysts are estimating that Genuine Parts will report an earnings per share (EPS) of $2.07.
Investors in Genuine Parts are eagerly awaiting the company's announcement, hoping for news of surpassing estimates and positive guidance for the next quarter.
It's worth noting for new investors that stock prices can be heavily influenced by future projections rather than just past performance.
Performance in Previous Earnings
In the previous earnings release, the company beat EPS by $0.07, leading to a 1.04% increase in the share price the following trading session.
Here's a look at Genuine Parts's past performance and the resulting price change:
| Quarter | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 |
|---|---|---|---|---|
| EPS Estimate | 1.68 | 1.55 | 2.42 | 2.59 |
| EPS Actual | 1.75 | 1.61 | 1.88 | 2.44 |
| Price Change % | 1.0% | 0.0% | 3.0% | -1.0% |
Market Performance of Genuine Parts's Stock
Shares of Genuine Parts were trading at $122.91 as of July 18. Over the last 52-week period, shares are down 9.56%. Given that these returns are generally negative, long-term shareholders are likely bearish going into this earnings release.
Analyst Opinions on Genuine Parts
Understanding market sentiments and expectations within the industry is crucial for investors. This analysis delves into the latest insights on Genuine Parts.
Genuine Parts has received a total of 2 ratings from analysts, with the consensus rating as Buy. With an average one-year price target of $133.5, the consensus suggests a potential 8.62% upside.
Comparing Ratings with Competitors
This comparison focuses on the analyst ratings and average 1-year price targets of Pool, LKQ and A-Mark Precious Metals, three major players in the industry, shedding light on their relative performance expectations and market positioning.
- Analysts currently favor an Neutral trajectory for Pool, with an average 1-year price target of $326.4, suggesting a potential 165.56% upside.
- Analysts currently favor an Outperform trajectory for LKQ, with an average 1-year price target of $60.0, suggesting a potential 51.18% downside.
- Analysts currently favor an Buy trajectory for A-Mark Precious Metals, with an average 1-year price target of $31.5, suggesting a potential 74.37% downside.
Insights: Peer Analysis
In the peer analysis summary, key metrics for Pool, LKQ and A-Mark Precious Metals are highlighted, providing an understanding of their respective standings within the industry and offering insights into their market positions and comparative performance.
| Company | Consensus | Revenue Growth | Gross Profit | Return on Equity |
|---|---|---|---|---|
| Genuine Parts | Buy | 1.43% | $2.17B | 4.42% |
| Pool | Neutral | -4.40% | $312.37M | 4.24% |
| LKQ | Outperform | -6.48% | $1.38B | 2.77% |
| A-Mark Precious Metals | Buy | 15.26% | $41.02M | -1.36% |
Key Takeaway:
Genuine Parts ranks at the top for Revenue Growth and Gross Profit among its peers. However, it ranks at the bottom for Return on Equity.
Get to Know Genuine Parts Better
Genuine Parts sells aftermarket automotive parts (60% of sales) and industrial products (40% of sales) in the United States and internationally. The automotive segment primarily acts as a distributor to its network of 9,800 global retail locations of which about two thirds are independently owned and operated. We estimate Genuine serves around 6,000 retail locations in the US operating under the Napa Auto Parts brand, with about 80% of end-market sales derived from professional customers. Its industrial segment, primarily operating under the Motion banner in the United States, is a leading distributor of bearings, power transmission, and other industrial products to more than 200,000 maintenance, repair, and original equipment manufacturer customers.
Key Indicators: Genuine Parts's Financial Health
Market Capitalization: Exceeding industry standards, the company's market capitalization places it above industry average in size relative to peers. This emphasizes its significant scale and robust market position.
Revenue Growth: Over the 3 months period, Genuine Parts showcased positive performance, achieving a revenue growth rate of 1.43% as of 31 March, 2025. This reflects a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Consumer Discretionary sector.
Net Margin: Genuine Parts's net margin excels beyond industry benchmarks, reaching 3.31%. This signifies efficient cost management and strong financial health.
Return on Equity (ROE): Genuine Parts's financial strength is reflected in its exceptional ROE, which exceeds industry averages. With a remarkable ROE of 4.42%, the company showcases efficient use of equity capital and strong financial health.
Return on Assets (ROA): Genuine Parts's ROA surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 0.99% ROA, the company effectively utilizes its assets for optimal returns.
Debt Management: With a high debt-to-equity ratio of 1.37, Genuine Parts faces challenges in effectively managing its debt levels, indicating potential financial strain.
To track all earnings releases for Genuine Parts visit their earnings calendar on our site.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
