Genuine Parts (GPC) Q3 Earnings Report Preview: What To Look For
Auto and industrial parts retailer Genuine Parts (NYSE:GPC) will be reporting results tomorrow morning. Here’s what you need to know.
Genuine Parts missed analysts’ revenue expectations by 1.2% last quarter, reporting revenues of $5.96 billion, flat year on year. It was a slower quarter for the company, with underwhelming earnings guidance for the full year and a miss of analysts’ earnings estimates.
Is Genuine Parts a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Genuine Parts’s revenue to grow 2.1% year on year to $5.95 billion, in line with the 2.6% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.43 per share.
Heading into earnings, analysts covering the company have grown increasingly bearish with revenue estimates seeing 3 downward revisions over the last 30 days (we track 10 analysts). Genuine Parts has missed Wall Street’s revenue estimates five times over the last two years.
Looking at Genuine Parts’s peers in the automotive and marine retail segment, some have already reported their Q3 results, giving us a hint as to what we can expect. AutoZone delivered year-on-year revenue growth of 9%, meeting analysts’ expectations, and CarMax reported flat revenue, topping estimates by 2.7%. AutoZone traded up 2.1% following the results while CarMax was also up 3.8%.
Read our full analysis of AutoZone’s results here and CarMax’s results here.
Investors in the automotive and marine retail segment have had steady hands going into earnings, with share prices flat over the last month. Genuine Parts is up 3.4% during the same time and is heading into earnings with an average analyst price target of $154.54 (compared to the current share price of $142.40).
Unless you’ve been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. While Nvidia and AMD are trading close to all-time highs, we prefer a lesser-known (but still profitable) semiconductor stock benefitting from the rise of AI. Click here to access our free report on our favorite semiconductor growth story.
