Genuine Parts (NYSE:GPC) Issues Earnings Results, Beats Expectations By $0.07 EPS

Genuine Parts (NYSE:GPC) announced its quarterly earnings results on Tuesday. The specialty retailer reported $2.15 earnings per share for the quarter, beating the consensus estimate of $2.08 by $0.07, FiscalAI reports. The firm had revenue of $6.54 billion for the quarter, compared to analysts’ expectations of $6.43 billion. Genuine Parts had a return on equity of 22.59% and a net margin of 0.13%.The company’s revenue was up 6.0% on a year-over-year basis. During the same period in the prior year, the business posted $2.10 earnings per share. Genuine Parts updated its FY 2026 guidance to 7.500-8.000 EPS.

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

• Genuine Parts reported a strong second quarter, with sales up about 6% to $6.5 billion and adjusted EPS rising to $2.15, both ahead of internal expectations.
• Industrial was a standout, with sales up 7%, comparable sales up 6%, and segment EBITDA up 10%, driven by broad-based demand improvement and pricing/sourcing initiatives.
• Management said the company remains on track to separate its automotive and industrial businesses in Q1 2027, with the standalone audit completed and a confidential Form 10 expected later this summer.
• Iran-related inflation and higher freight/fuel costs are pressuring the business, and the company now expects an additional $20 million-$30 million of incremental costs in the second half tied to that conflict.
• Management highlighted improving momentum in NAPA and international auto, including stronger July trends, sequential improvement in independent owners, and continued gains in Europe and Canada.

Genuine Parts Trading Up 0.2%

Shares of NYSE GPC opened at $120.56 on Thursday. Genuine Parts has a twelve month low of $90.78 and a twelve month high of $151.57. The company has a quick ratio of 0.48, a current ratio of 1.16 and a debt-to-equity ratio of 0.88. The firm has a market cap of $16.59 billion, a PE ratio of 479.36 and a beta of 0.63. The business has a fifty day simple moving average of $109.40 and a two-hundred day simple moving average of $115.51.

Genuine Parts Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Thursday, July 2nd. Shareholders of record on Friday, June 5th were issued a dividend of $1.0625 per share. This represents a $4.25 annualized dividend and a yield of 3.5%. The ex-dividend date was Friday, June 5th. Genuine Parts’s dividend payout ratio (DPR) is presently 1,700.00%.

Analysts Set New Price Targets

GPC has been the topic of several research analyst reports. Raymond James Financial reaffirmed a “strong-buy” rating and issued a $165.00 price target on shares of Genuine Parts in a report on Wednesday. Zacks Research upgraded Genuine Parts from a “strong sell” rating to a “hold” rating in a research report on Monday, May 25th. DA Davidson upped their target price on Genuine Parts from $145.00 to $150.00 and gave the stock a “buy” rating in a research note on Monday, July 6th. Truist Financial lifted their price target on Genuine Parts from $124.00 to $126.00 and gave the company a “hold” rating in a research report on Wednesday. Finally, Evercore reissued an “outperform” rating on shares of Genuine Parts in a report on Wednesday. One analyst has rated the stock with a Strong Buy rating, four have issued a Buy rating and five have assigned a Hold rating to the company. Based on data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and a consensus price target of $146.88.

Insiders Place Their Bets

In other Genuine Parts news, insider James F. Howe sold 415 shares of Genuine Parts stock in a transaction dated Tuesday, May 5th. The stock was sold at an average price of $104.33, for a total transaction of $43,296.95. Following the completion of the transaction, the insider owned 25,589 shares in the company, valued at approximately $2,669,700.37. This trade represents a 1.60% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Corporate insiders own 0.13% of the company’s stock.

Institutional Investors Weigh In On Genuine Parts

Institutional investors have recently bought and sold shares of the company. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its stake in Genuine Parts by 3.9% in the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 17,717 shares of the specialty retailer’s stock worth $2,111,000 after purchasing an additional 671 shares in the last quarter. Woodline Partners LP raised its holdings in Genuine Parts by 40.7% in the 1st quarter. Woodline Partners LP now owns 11,746 shares of the specialty retailer’s stock valued at $1,399,000 after buying an additional 3,396 shares during the period. EverSource Wealth Advisors LLC lifted its holdings in shares of Genuine Parts by 15.8% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 1,005 shares of the specialty retailer’s stock worth $122,000 after acquiring an additional 137 shares during the last quarter. Daiwa Securities Group Inc. boosted its position in shares of Genuine Parts by 5.6% during the second quarter. Daiwa Securities Group Inc. now owns 24,954 shares of the specialty retailer’s stock worth $3,027,000 after buying an additional 1,323 shares during the period. Finally, AXA S.A. increased its stake in Genuine Parts by 37.2% during the second quarter. AXA S.A. now owns 51,292 shares of the specialty retailer’s stock worth $6,222,000 after purchasing an additional 13,898 shares during the period. 78.83% of the stock is currently owned by institutional investors and hedge funds.

Genuine Parts Company Profile

Genuine Parts Company (NYSE: GPC) is a global distributor of automotive replacement parts, industrial parts and business products with a history dating back to 1928. Headquartered in Atlanta, Georgia, the company operates a broad distribution network and retail presence serving repair shops, independent retailers, industrial customers and commercial accounts. Its business model centers on stocking and delivering a wide range of parts and supplies to support aftermarket and maintenance needs across multiple end markets.

Genuine Parts conducts its operations through several well-known operating groups and subsidiaries.