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Genuine Parts (GPC) Q2 Earnings: A Surprise in Store?
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Genuine Parts Company (GPC - Free Report) is set to report second-quarter 2016 results on Jul 19. Last quarter, the company posted a positive earnings surprise of 1.94%. Let’s see how things are shaping up for this announcement.
Factors Influencing this Quarter
Genuine Parts has undertaken various initiatives to boost sales and earnings, such as product line expansion, penetration into new markets and cost-saving activities. The company relies on a diverse product portfolio for top- and bottom-line growth. Moreover, its recent acquisitions should drive sales in the quarter to be reported.
However, Genuine Parts is facing challenges due to fragile economic conditions in some global markets. This is expected to have an adverse impact on segment results, primarily that of nonautomotive businesses. In addition, rising competition in the industries in which Genuine Parts operates poses a challenge for the company.
Earnings Whispers
Our proven model does not conclusively show that Genuine Parts is likely to beat earnings this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1, 2 or 3 for this to happen. This is not the case here, as you will see below:
Zacks ESP: The Earnings ESP represents the difference between the Most Accurate estimate and the Zacks Consensus Estimate. Genuine Parts’ Earnings ESP is 0.00% because the Most Accurate estimate and the Zacks Consensus Estimate both stand at $1.30.
Zacks Rank: Genuine Parts carries a Zacks Rank #3 (Hold), which increases the predictive power of ESP. However, the company’s ESP of 0.00% makes surprise prediction difficult.
We caution against stocks with a Zacks Rank #4 or 5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Here are some companies you may want to consider as our model shows that these have the right combination of elements to post an earnings beat this quarter:
Ford Motor Co. (F - Free Report) has an Earnings ESP of +3.39% and a Zacks Rank #3. The company’s second-quarter 2016 financial results are expected to release on Jul 28.
General Motors Company (GM - Free Report) has an Earnings ESP of +4.08% and a Zacks Rank #3. The company’s second-quarter 2016 financial results are expected to release on Jul 21.
Johnson Controls Inc. (JCI - Free Report) has an Earnings ESP of +1.96% and a Zacks Rank #3. The company’s third-quarter fiscal 2016 financial results are expected to release on Jul 22.
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Genuine Parts (GPC) Q2 Earnings: A Surprise in Store?
Genuine Parts Company (GPC - Free Report) is set to report second-quarter 2016 results on Jul 19. Last quarter, the company posted a positive earnings surprise of 1.94%. Let’s see how things are shaping up for this announcement.
Factors Influencing this Quarter
Genuine Parts has undertaken various initiatives to boost sales and earnings, such as product line expansion, penetration into new markets and cost-saving activities. The company relies on a diverse product portfolio for top- and bottom-line growth. Moreover, its recent acquisitions should drive sales in the quarter to be reported.
However, Genuine Parts is facing challenges due to fragile economic conditions in some global markets. This is expected to have an adverse impact on segment results, primarily that of nonautomotive businesses. In addition, rising competition in the industries in which Genuine Parts operates poses a challenge for the company.
Earnings Whispers
Our proven model does not conclusively show that Genuine Parts is likely to beat earnings this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1, 2 or 3 for this to happen. This is not the case here, as you will see below:
Zacks ESP: The Earnings ESP represents the difference between the Most Accurate estimate and the Zacks Consensus Estimate. Genuine Parts’ Earnings ESP is 0.00% because the Most Accurate estimate and the Zacks Consensus Estimate both stand at $1.30.
Zacks Rank: Genuine Parts carries a Zacks Rank #3 (Hold), which increases the predictive power of ESP. However, the company’s ESP of 0.00% makes surprise prediction difficult.
We caution against stocks with a Zacks Rank #4 or 5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
GENUINE PARTS Price and EPS Surprise
GENUINE PARTS Price and EPS Surprise | GENUINE PARTS Quote
Stocks to Consider
Here are some companies you may want to consider as our model shows that these have the right combination of elements to post an earnings beat this quarter:
Ford Motor Co. (F - Free Report) has an Earnings ESP of +3.39% and a Zacks Rank #3. The company’s second-quarter 2016 financial results are expected to release on Jul 28.
General Motors Company (GM - Free Report) has an Earnings ESP of +4.08% and a Zacks Rank #3. The company’s second-quarter 2016 financial results are expected to release on Jul 21.
Johnson Controls Inc. (JCI - Free Report) has an Earnings ESP of +1.96% and a Zacks Rank #3. The company’s third-quarter fiscal 2016 financial results are expected to release on Jul 22.
Want 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 >>