Overview

• US auto and industrial parts distributor's Q2 revenue rose 6%, beating analyst expectations

• Adjusted EPS for Q2 was $2.15, beating analyst expectations

• Company reaffirmed 2026 adjusted EPS outlook and plans business separation in Q1 2027

Outlook

• Genuine Parts reaffirms 2026 adjusted diluted EPS outlook of $7.50 to $8.00

• Company lowers 2026 GAAP diluted EPS outlook to $5.90-$6.40 from $6.10-$6.60

• Company narrows 2026 North America Automotive sales growth outlook to 2.5%-4.5%

Result Drivers

• COMPARABLE SALES GROWTH - Q2 sales rose 3.4% on a comparable basis, contributing to overall revenue growth

• ACQUISITIONS AND CURRENCY - Acquisitions added 1.2% and foreign currency 1.4% to total sales growth

• RESTRUCTURING AND SEPARATION COSTS - Net income was impacted by $69 mln in after-tax costs related to restructuring and the planned business separation

Company press release: ID:nPn4Yl8HSa

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q2 Sales	Beat	$6.54 bln	$6.43 bln (8 Analysts)
Q2 Adjusted EPS	Beat	$2.15	$2.08 (9 Analysts)
Q2 EPS		$1.65
Q2 Net Income		$227.56 mln

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 7 "strong buy" or "buy", 8 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the auto, truck & motorcycle parts peer group is "buy"

• Wall Street's median 12-month price target for Genuine Parts Co is $135.00, about 10.3% above its July 20 closing price of $122.40

• The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 13 three months ago

Reuters Recommended Reads

• July 21 - GM beats Q2 revenue, adjusted EPS expectations, raises 2026 outlook

• July 21 - 3M lifts annual profit forecast as industrial unit remains resilient

• July 20 - Sweden's Hexpol Q2 sales, operating profit beat estimates

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