Why Is Genuine Parts (GPC) Down 5.6% Since Last Earnings Report?

It has been about a month since the last earnings report for Genuine Parts (GPC). Shares have lost about 5.6% in that time frame, underperforming the S&P 500.Will the recent negative trend continue leading up to its next earnings release, or is Genuine Parts due for a breakout? Well, first let's take a quick look at its most recent earnings report in order to get a better handle on the recent drivers for Genuine Parts Company before we dive into how investors and analysts have reacted as of late.Genuine Parts Misses Q3 Earnings EstimatesGenuine Parts reported third-quarter 2025 adjusted earnings of $1.98 per share, which missed the Zacks Consensus Estimate of $2.02. The bottom line, however, increased from the year-ago quarter’s earnings of $1.88 per share. The company reported net sales of $6.26 billion, which surpassed the Zacks Consensus Estimate of $6.13 billion and grew 5% year over year. The increase was driven by a 2.3% contribution from comparable sales, a 1.8% boost from acquisitions and a 0.8% favorable impact from forex transactions.Segmental PerformanceThe Automotive segment’s net sales totaled $4 billion in the reported quarter, up 5% year over year, thanks to comps growth, acquisition benefits and favorable forex transactions. The sales also surpassed our estimate of $3.87 billion. The segment’s comparable sales grew 1.6% year over year. EBITDA from the unit increased 5.9% to $335 million. EBITDA margin came in at 8.4%, up 110 basis points from the year-ago period.The Industrial Parts segment’s net sales rose 4.6% year over year to $2.3 billion, courtesy of acquisition benefits and comps growth. The sales also beat our estimate of $2.24 billion. The segment’s comparable sales rose 3.7% in the reported quarter. EBITDA grew 6.6% to $285 million, with a margin of 12.6%, up 30 basis points year over year.Financial PerformanceGenuine Parts had cash and cash equivalents worth $431 million as of Sept. 30, 2025, down from $480 million as of Dec. 31, 2024. Long-term debt was $3.75 billion at the end of the third quarter.2025 GuidanceFor 2025, Genuine Parts expects overall sales growth of 3-4% versus the prior guided range of 1-3%. Automotive sales are now anticipated to increase 4-5%, compared with the previous forecast of 1.5-3.5% growth. Expectations for industrial sales growth were raised to 2-3% from 1-3% projected earlier.The company now envisions adjusted earnings per share between $7.50 and $7.75 compared with the prior guided range of $7.5-$8. Operating cash flow is expected in the band of $1.1-$1.3 billion, unchanged from the previous guidance. The FCF projection was maintained in the range of $700-$900 million. Normal 0 false false false EN-IN X-NONE X-NONE /* Style Definitions */ table.MsoNormalTable{mso-style-name:"Table Normal";mso-tstyle-rowband-size:0;mso-tstyle-colband-size:0;mso-style-noshow:yes;mso-style-priority:99;mso-style-parent:"";mso-padding-alt:0cm 5.4pt 0cm 5.4pt;mso-para-margin-top:0cm;mso-para-margin-right:0cm;mso-para-margin-bottom:8.0pt;mso-para-margin-left:0cm;line-height:107%;mso-pagination:widow-orphan;font-size:11.0pt;font-family:"Calibri",sans-serif;mso-ascii-font-family:Calibri;mso-ascii-theme-font:minor-latin;mso-hansi-font-family:Calibri;mso-hansi-theme-font:minor-latin;mso-bidi-font-family:"Times New Roman";mso-bidi-theme-font:minor-bidi;mso-fareast-language:EN-US;}How Have Estimates Been Moving Since Then?Since the earnings release, investors have witnessed a flat trend in estimates revision.VGM ScoresAt this time, Genuine Parts has a average Growth Score of C, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of B on the value side, putting it in the second quintile for this investment strategy.Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.Outlook Genuine Parts has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Genuine Parts Company (GPC): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks