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Genuine Parts (GPC) to Report Q2 Earnings: What's in Store?
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Genuine Parts Company (GPC - Free Report) is slated to release second-quarter 2020 results on Jul 30, before the opening bell. The Zacks Consensus Estimate for the quarter’s earnings is pegged at $1.03 per share on revenues of $4.45 billion.
This Atlanta-based automotive replacement parts supplier delivered disappointing results in the last reported quarter due to dismal contribution across all segments.
Over the trailing four quarters, Genuine Parts beat estimates on two occasions for as many misses, the average negative surprise being 4.69%. This is depicted in the graph below:
The Zacks Consensus Estimate for Genuine Parts’ second-quarter earnings per share has been revised upward by 13 cents to $1.03 in the past seven days. This compares unfavorably with the year-ago quarter’s $1.57 per share. The Zacks Consensus Estimate for quarterly revenues also suggests a year-over-year decrease of 9.81%.
What the Zacks Model Says
Our proven model conclusively predicts an earnings beat for Genuine Parts this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. You can see the complete list of today’s Zacks #1 Rank stocks here.
Earnings ESP: Genuine Parts has an Earnings ESP of +14.52%. This is because the Most Accurate Estimate of $1.18 per share comes in 15 cents higher than the Zacks Consensus Estimate. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Genuine Parts carries a Zacks Rank of 3 currently.
Key Factors
Genuine Parts’ quarterly results will likely reflect positive impact of the company’s acquisitions to improve product offerings and expand its geographical footprint. The acquisitions of PartsPoint and Inenco are likely to have contributed to the company’s operating margin, and consequently, the bottom line. Further, Alliance Automotive’s deal to acquire Todd Group, in a bid to expand the firm’s heavy-duty parts and service offerings, bodes well.
Moreover, Genuine Parts divested its wholly-owned subsidiary S.P. Richards Canada to Novexco Inc this June in a bid to streamline the portfolio. The company is likely to have utilized the cash proceeds of this transaction in compliance with its capital-allocation strategy and to repay debt during the quarter under review.
Further, Genuine Parts’ cost-containment strategies, including delayed merit increases, headcount reductions, hiring freezes and compensation reductions, in the quarter are likely to have boosted cash flow and might have offered some respite from the pandemic-induced financial crisis.
However, Genuine Parts is expected to have registered a decline in sales volumes amid industry headwinds during the June-end quarter. Heightening coronavirus fears are likely to have thwarted vehicle demand, in turn dampening demand for replacement parts and materials, and business products that are required to repair and maintain vehicles. The company withdrew the 2020 guidance and suspended its share-repurchase program in response to its supply-chain disruptions due to the coronavirus crisis.
Other Stocks to Consider
Here are some other stocks worth considering, as these have the right combination of elements to come up with an earnings beat this time around:
Magna International Inc. (MGA - Free Report) has an Earnings ESP of +6.52% and carries a Zacks Rank #2 at present. The company is slated to release second-quarter 2020 earnings on Aug 7.
Lear Corporation (LEA - Free Report) has an Earnings ESP of +3.50% and currently carries a Zacks Rank #2. The company is scheduled to report quarterly numbers on Aug 4.
Ford Motor Company (F - Free Report) has an Earnings ESP of +13.66% and carries a Zacks Rank #3 currently. The company is set to announce earnings figures on Jul 30.
These Stocks Are Poised to Soar Past the Pandemic
The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.
Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.
Image: Bigstock
Genuine Parts (GPC) to Report Q2 Earnings: What's in Store?
Genuine Parts Company (GPC - Free Report) is slated to release second-quarter 2020 results on Jul 30, before the opening bell. The Zacks Consensus Estimate for the quarter’s earnings is pegged at $1.03 per share on revenues of $4.45 billion.
This Atlanta-based automotive replacement parts supplier delivered disappointing results in the last reported quarter due to dismal contribution across all segments.
Over the trailing four quarters, Genuine Parts beat estimates on two occasions for as many misses, the average negative surprise being 4.69%. This is depicted in the graph below:
Genuine Parts Company Price and Consensus
Genuine Parts Company price-consensus-chart | Genuine Parts Company Quote
Which Way are the Estimates Headed?
The Zacks Consensus Estimate for Genuine Parts’ second-quarter earnings per share has been revised upward by 13 cents to $1.03 in the past seven days. This compares unfavorably with the year-ago quarter’s $1.57 per share. The Zacks Consensus Estimate for quarterly revenues also suggests a year-over-year decrease of 9.81%.
What the Zacks Model Says
Our proven model conclusively predicts an earnings beat for Genuine Parts this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. You can see the complete list of today’s Zacks #1 Rank stocks here.
Earnings ESP: Genuine Parts has an Earnings ESP of +14.52%. This is because the Most Accurate Estimate of $1.18 per share comes in 15 cents higher than the Zacks Consensus Estimate. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Genuine Parts carries a Zacks Rank of 3 currently.
Key Factors
Genuine Parts’ quarterly results will likely reflect positive impact of the company’s acquisitions to improve product offerings and expand its geographical footprint. The acquisitions of PartsPoint and Inenco are likely to have contributed to the company’s operating margin, and consequently, the bottom line. Further, Alliance Automotive’s deal to acquire Todd Group, in a bid to expand the firm’s heavy-duty parts and service offerings, bodes well.
Moreover, Genuine Parts divested its wholly-owned subsidiary S.P. Richards Canada to Novexco Inc this June in a bid to streamline the portfolio. The company is likely to have utilized the cash proceeds of this transaction in compliance with its capital-allocation strategy and to repay debt during the quarter under review.
Further, Genuine Parts’ cost-containment strategies, including delayed merit increases, headcount reductions, hiring freezes and compensation reductions, in the quarter are likely to have boosted cash flow and might have offered some respite from the pandemic-induced financial crisis.
However, Genuine Parts is expected to have registered a decline in sales volumes amid industry headwinds during the June-end quarter. Heightening coronavirus fears are likely to have thwarted vehicle demand, in turn dampening demand for replacement parts and materials, and business products that are required to repair and maintain vehicles. The company withdrew the 2020 guidance and suspended its share-repurchase program in response to its supply-chain disruptions due to the coronavirus crisis.
Other Stocks to Consider
Here are some other stocks worth considering, as these have the right combination of elements to come up with an earnings beat this time around:
Magna International Inc. (MGA - Free Report) has an Earnings ESP of +6.52% and carries a Zacks Rank #2 at present. The company is slated to release second-quarter 2020 earnings on Aug 7.
Lear Corporation (LEA - Free Report) has an Earnings ESP of +3.50% and currently carries a Zacks Rank #2. The company is scheduled to report quarterly numbers on Aug 4.
Ford Motor Company (F - Free Report) has an Earnings ESP of +13.66% and carries a Zacks Rank #3 currently. The company is set to announce earnings figures on Jul 30.
These Stocks Are Poised to Soar Past the Pandemic
The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.
Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.
See the 5 high-tech stocks now>>