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Can Genuine Parts (GPC) Beat Estimates This Earnings Season?

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Genuine Parts Company (GPC - Free Report) is slated to release first-quarter 2022 results on Apr 21, before the opening bell. The Zacks Consensus Estimate for the quarter’s earnings and revenues is pegged at $1.70 and $5.13 billion, respectively.

The Zacks Consensus Estimate for Genuine Parts’ first-quarter earnings per share has been unchanged over the past 30 days. The bottom-line projection implies year-over-year growth of 13.3%. The Zacks Consensus Estimate for quarterly revenues suggests a year-over-year increase of 15%.

This Atlanta, GA-based automotive replacement parts supplier recorded better-than-anticipated earnings in the last reported quarter. The bottom line also grew 17.8% year over year on robust sales growth coupled with ongoing gross-margin improvement initiatives and expenses control actions. Over the trailing four quarters, Genuine Parts surpassed earnings estimates on all occasions, with the average being 15%. This is depicted in the graph below:

Earnings Whispers

Our proven model predicts an earnings beat for Genuine Parts this time around as well. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here.

Earnings ESP: Genuine Parts has an Earnings ESP of +1.89%. This is because the Most Accurate Estimate is pegged 3 cents above 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 currently carries a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Things to Note

Per IHS Markit, the average age of passenger cars and light trucks hit a record high of 12.1 years. This boosted the demand for Genuine Parts’ offerings, which will positively reflect on the upcoming results. Also, bolt-on acquisitions of Winparts, Rare Spares and PARts DB are expected to have boosted the firm’s top line in first-quarter 2022. Consequently, the Zacks Consensus Estimate for the automotive unit’s revenues is pegged at $3,219 million, indicating an increase from $2,953 million recorded in the year-ago period.

The Zacks Consensus Estimate for revenues from the Industrial Parts unit is $1,912, suggesting growth from $1,512 generated in the year-ago period. The segmental revenues are likely to have gotten a boost from the Inneco buyout, which also expanded the industrial footprint of Genuine Parts to Australasia. The consensus mark for the segment’s operating profit is pegged at $155 million, calling for an increase from $125 million recorded in first-quarter 2021.

Other Stocks With Favorable Combination

Here are a few other stocks in the auto space, which, according to our model, also have the right combination of elements to post an earnings beat for the quarter to be reported:

Allison Transmission (ALSN - Free Report) has an Earnings ESP of +10.35% and a Zacks Rank #3. The stock is set to report first-quarter 2022 earnings on Apr 27.

The Zacks Consensus Estimate for Allison’s to-be-reported quarter’s earnings and revenues is pegged at $1.16 per share and $642 million, respectively. Encouragingly, ALSN surpassed earnings estimates in the last four quarters, with an average of 13.4%.

LKQ Corp (LKQ - Free Report) has an Earnings ESP of +0.37% and a Zacks Rank #3. The stock is set to report first-quarter 2022 earnings on Apr 28.

The Zacks Consensus Estimate for LKQ’s to-be-reported quarter’s earnings and revenues is pegged at 91 cents per share and $3.28 billion, respectively. Encouragingly, LKQ surpassed earnings estimates in the last four quarters, with an average of 33.9%.

Cummins, Inc. (CMI - Free Report) has an Earnings ESP of +1.68% and a Zacks Rank #3. The stock is set to report first-quarter 2022 earnings on May 3.

The Zacks Consensus Estimate for Cummins’ to-be-reported quarter’s earnings and revenues is pegged at $3.55 per share and $6.02 billion, respectively. Over the trailing four quarters, CMI surpassed earnings estimates twice for as many misses, with an average surprise of 0.5%.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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