A Look at Genuine Parts's Upcoming Earnings Report

Genuine Parts GPC is gearing up to announce its quarterly earnings on Tuesday, 2024-10-22. 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 $2.44.

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.

Past Earnings Performance

During the last quarter, the company reported an EPS missed by $0.15, leading to a 1.07% drop in the share price on the subsequent day.

Here's a look at Genuine Parts's past performance and the resulting price change:

Performance of Genuine Parts Shares

Shares of Genuine Parts were trading at $143.17 as of October 18. Over the last 52-week period, shares are up 11.13%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.

Analyst Opinions on Genuine Parts

For investors, staying informed about market sentiments and expectations in the industry is paramount. This analysis provides an exploration of the latest insights on Genuine Parts.

The consensus rating for Genuine Parts is Neutral, based on 6 analyst ratings. With an average one-year price target of $157.5, there's a potential 10.01% upside.

Comparing Ratings with Competitors

The following analysis focuses on the analyst ratings and average 1-year price targets of Pool, LKQ and GigaCloud Tech, three prominent industry players, providing insights into their relative performance expectations and market positioning.

• For Pool, analysts project an Neutral trajectory, with an average 1-year price target of $373.57, indicating a potential 160.93% upside.
• The prevailing sentiment among analysts is an Outperform trajectory for LKQ, with an average 1-year price target of $58.43, implying a potential 59.19% downside.
• Analysts currently favor an Buy trajectory for GigaCloud Tech, with an average 1-year price target of $50.0, suggesting a potential 65.08% downside.

Insights: Peer Analysis

The peer analysis summary provides a snapshot of key metrics for Pool, LKQ and GigaCloud Tech, illuminating their respective standings within the industry. These metrics offer valuable insights into their market positions and comparative performance.

Key Takeaway:

Genuine Parts ranks in the middle for revenue growth among its peers. It has the highest gross profit compared to others. The return on equity of Genuine Parts is the lowest. Overall, Genuine Parts is positioned in the middle compared to its peers in terms of financial performance metrics.

All You Need to Know About Genuine Parts

Genuine Parts sells aftermarket automotive parts (about 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 sales derived from professional customers. Its industrial segment, primarily operating under the Motion banner in the United States, serves as a leading distributor of bearings, power transmission, and other industrial products to more than 200,000 maintenance, repair, and original equipment manufacturer clients.

Genuine Parts: Delving into Financials

Market Capitalization: Boasting an elevated market capitalization, the company surpasses industry averages. This signals substantial size and strong market recognition.

Positive Revenue Trend: Examining Genuine Parts's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 0.8% as of 30 June, 2024, showcasing a substantial increase in top-line earnings. When compared to others in the Consumer Discretionary sector, the company excelled with a growth rate higher than the average among peers.

Net Margin: Genuine Parts's net margin excels beyond industry benchmarks, reaching 4.96%. This signifies efficient cost management and strong financial health.

Return on Equity (ROE): Genuine Parts's ROE surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 6.61% ROE, the company effectively utilizes shareholder equity capital.

Return on Assets (ROA): Genuine Parts's ROA stands out, surpassing industry averages. With an impressive ROA of 1.59%, the company demonstrates effective utilization of assets and strong financial performance.

Debt Management: The company faces challenges in debt management with a debt-to-equity ratio higher than the industry average. With a ratio of 1.14, caution is advised due to increased financial risk.

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.