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Can Genuine Parts (GPC) Maintain its Beat Streak in Q3 Earnings?
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Genuine Parts Company (GPC - Free Report) is slated to release third-quarter 2022 results on Oct 20, before the market opens. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings per share and revenues is pegged at $2.03 and $5.39 billion, respectively.
For the third quarter, the consensus estimate for Genuine Parts’ earnings per share has increased by 1 cent in the past 30 days. Its bottom-line estimates imply growth of 8% from the year-ago reported number. The Zacks Consensus Estimate for its quarterly revenues suggests a year-over-year increase of 11.85%. Over the trailing four quarters, Genuine Parts surpassed earnings estimates on all four occasions, with the average surprise being 11.03%. This is depicted in the graph below:
In second-quarter 2022, GPC’s adjusted earnings per share of $2.20 surpassed the consensus metric of $2.02 and rose 26.4% year over year. Higher-than-expected sales and operating profits across both its segments resulted in this outperformance. The company reported net sales of $5,602.4 million, outpacing the Zacks Consensus Estimate of $5,265.8 million. The top line rose 17.1% year over year.
Earnings Whispers
Our proven model predicts an earnings beat for the automotive replacement parts supplier for the quarter to be reported, as it has the right combination of the two key ingredients. A 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. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Earnings ESP: GPC has an Earnings ESP of +0.82%. This is because the Most Accurate Estimate is pegged 2 cents higher than the Zacks Consensus Estimate.
Zacks Rank: It currently carries a Zacks Rank of 3.
The ongoing microchip deficit has caused an automobile parts shortage that has affected new and used vehicle production. The supply bottleneck likely led consumers to continue using their existing vehicles, consequently increasing the demand for auto replacement parts and the average age of vehicles. Genuine Parts’ quarterly performance is poised to ride on the robust demand for its products. Also, bolt-on acquisitions, including Winparts, Rare Spares, PartsPoint and Alliance Automotive Group, are anticipated to add to the top-line growth of the firm in third-quarter 2022.
Encouragingly, the Zacks Consensus Estimate for third-quarter revenues from the Automotive segment is pegged at $3,413 million, indicating a rise from $3,205 million recorded in the previous-year quarter. Nonetheless, the estimate for operating profit in the segment, pegged at $279 million, suggests a decline from $281 million. Soaring commodity costs may have dented margins.
The Zacks Consensus Estimate for third-quarter revenues from the Industrial segment is pegged at $1,934 million, indicating a rise from $1,614 million recorded in the previous-year quarter. The Inneco buyout, which has expanded the industrial footprint of Genuine Parts into Australasia, is likely to have aided revenues in the quarter. The estimate for operating profit in the segment is pegged at $185 million, suggesting an increase from $166 million.
Other Stocks With Favorable Combination
Let’s take a look at some other players from the auto space, which, according to our model, have the right combination of elements to post an earnings beat for the quarter to be reported:
Oshkosh (OSK - Free Report) will release third-quarter 2022 results on Oct 27. The company has an Earnings ESP of +6.68% and a Zacks Rank #3.
The Zacks Consensus Estimate for Oshkosh’s to-be-reported quarter’s earnings and revenues is pegged at $1.13 per share and $2.14 billion, respectively. OSK surpassed earnings estimates in two of the trailing four quarters and missed in the rest, with the average surprise being a negative 13.62%.
Lear (LEA - Free Report) will release third-quarter 2022 results on Nov 1. The company has an Earnings ESP of +11.72% and a Zacks Rank #3.
The Zacks Consensus Estimate for Cummins’ to-be-reported quarter’s earnings and revenues is pegged at $2.15 per share and $5.18 billion, respectively. LEA surpassed earnings estimates in three of the trailing four quarters and missed once, with the average surprise being 14.41%.
Cummins (CMI - Free Report) will release third-quarter 2022 results on Nov 3. The company has an Earnings ESP of +2.00% and a Zacks Rank #2.
The Zacks Consensus Estimate for Cummins’ to-be-reported quarter’s earnings and revenues is pegged at $4.85 per share and $6.87 billion, respectively. CMI surpassed earnings estimates in two of the trailing four quarters and missed twice, with the average surprise being 1.49%.
Image: Bigstock
Can Genuine Parts (GPC) Maintain its Beat Streak in Q3 Earnings?
Genuine Parts Company (GPC - Free Report) is slated to release third-quarter 2022 results on Oct 20, before the market opens. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings per share and revenues is pegged at $2.03 and $5.39 billion, respectively.
For the third quarter, the consensus estimate for Genuine Parts’ earnings per share has increased by 1 cent in the past 30 days. Its bottom-line estimates imply growth of 8% from the year-ago reported number. The Zacks Consensus Estimate for its quarterly revenues suggests a year-over-year increase of 11.85%. Over the trailing four quarters, Genuine Parts surpassed earnings estimates on all four occasions, with the average surprise being 11.03%. This is depicted in the graph below:
Genuine Parts Company Price and EPS Surprise
Genuine Parts Company price-eps-surprise | Genuine Parts Company Quote
Q2 Highlights
In second-quarter 2022, GPC’s adjusted earnings per share of $2.20 surpassed the consensus metric of $2.02 and rose 26.4% year over year. Higher-than-expected sales and operating profits across both its segments resulted in this outperformance. The company reported net sales of $5,602.4 million, outpacing the Zacks Consensus Estimate of $5,265.8 million. The top line rose 17.1% year over year.
Earnings Whispers
Our proven model predicts an earnings beat for the automotive replacement parts supplier for the quarter to be reported, as it has the right combination of the two key ingredients. A 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. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Earnings ESP: GPC has an Earnings ESP of +0.82%. This is because the Most Accurate Estimate is pegged 2 cents higher than the Zacks Consensus Estimate.
Zacks Rank: It currently carries a Zacks Rank of 3.
You can see the complete list of today’s Zacks #1 Rank stocks here.
Factors at Play
The ongoing microchip deficit has caused an automobile parts shortage that has affected new and used vehicle production. The supply bottleneck likely led consumers to continue using their existing vehicles, consequently increasing the demand for auto replacement parts and the average age of vehicles. Genuine Parts’ quarterly performance is poised to ride on the robust demand for its products. Also, bolt-on acquisitions, including Winparts, Rare Spares, PartsPoint and Alliance Automotive Group, are anticipated to add to the top-line growth of the firm in third-quarter 2022.
Encouragingly, the Zacks Consensus Estimate for third-quarter revenues from the Automotive segment is pegged at $3,413 million, indicating a rise from $3,205 million recorded in the previous-year quarter. Nonetheless, the estimate for operating profit in the segment, pegged at $279 million, suggests a decline from $281 million. Soaring commodity costs may have dented margins.
The Zacks Consensus Estimate for third-quarter revenues from the Industrial segment is pegged at $1,934 million, indicating a rise from $1,614 million recorded in the previous-year quarter. The Inneco buyout, which has expanded the industrial footprint of Genuine Parts into Australasia, is likely to have aided revenues in the quarter. The estimate for operating profit in the segment is pegged at $185 million, suggesting an increase from $166 million.
Other Stocks With Favorable Combination
Let’s take a look at some other players from the auto space, which, according to our model, have the right combination of elements to post an earnings beat for the quarter to be reported:
Oshkosh (OSK - Free Report) will release third-quarter 2022 results on Oct 27. The company has an Earnings ESP of +6.68% and a Zacks Rank #3.
The Zacks Consensus Estimate for Oshkosh’s to-be-reported quarter’s earnings and revenues is pegged at $1.13 per share and $2.14 billion, respectively. OSK surpassed earnings estimates in two of the trailing four quarters and missed in the rest, with the average surprise being a negative 13.62%.
Lear (LEA - Free Report) will release third-quarter 2022 results on Nov 1. The company has an Earnings ESP of +11.72% and a Zacks Rank #3.
The Zacks Consensus Estimate for Cummins’ to-be-reported quarter’s earnings and revenues is pegged at $2.15 per share and $5.18 billion, respectively. LEA surpassed earnings estimates in three of the trailing four quarters and missed once, with the average surprise being 14.41%.
Cummins (CMI - Free Report) will release third-quarter 2022 results on Nov 3. The company has an Earnings ESP of +2.00% and a Zacks Rank #2.
The Zacks Consensus Estimate for Cummins’ to-be-reported quarter’s earnings and revenues is pegged at $4.85 per share and $6.87 billion, respectively. CMI surpassed earnings estimates in two of the trailing four quarters and missed twice, with the average surprise being 1.49%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.