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Genuine Parts Company (GPC), headquartered in Atlanta, Georgia, is a significant player in distributing automotive and industrial replacement parts. With a market cap of $19.02 billion, Genuine Parts Company serves many customers, including automotive service professionals, retailers, and industrial businesses. GPC is set to release its Q3 earnings report before the market opens on Tuesday, Oct. 22.
Ahead of the event, analysts expect GPC to report a profit of $2.45 per share, down 1.6% from $2.49 in the year-ago quarter. The company has surpassed Wall Street’s EPS estimates in three of the last four quarterly reports and missed on another occasion.
Its adjusted earnings of $2.44 per share for the last quarter missed the consensus estimate by 5.8%. Genuine Parts Company's quarterly performance was driven by growth in the Automotive segment but was impacted by weaker Industrial sales and lower-than-expected operating profits in both segments.
For fiscal 2024, analysts expect GPC to report EPS of $9.37, up marginally from $9.33 in fiscal 2023.
GPC stock is down 1.4% on a YTD basis, underperforming the broader S&P 500 Index's ($SPX) 19.5% gains and the Consumer Discretionary Select Sector SPDR Fund’s (XLY) 9.4% returns over the same time frame.
GPC’s underperformance is driven by softness in European markets and ongoing headwinds in the automotive and industrial sectors. Moreover, on Jul. 23, shares of GPC declined marginally following its Q2 earnings release. The company reported revenue of $5.96 billion, missing the consensus estimates of $6.04 billion.
The consensus opinion on GPC stock is moderately bullish, with an overall “Moderate Buy” rating. Of the nine analysts covering the stock, three advise a “Strong Buy” rating, and six suggest a “Hold.” GPC's average analyst price target is $155.75, indicating a potential upside of 14% from the current levels.
On the date of publication, Rashmi Kumari did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
