Genuine Parts Q2 revenue beats on comparable sales growth; plans business separation in Q1 2027

Genuine Parts Company

Genuine Parts Company

GPC

0.00


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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