It has been about a month since the last earnings report for Genuine Parts (GPC Quick QuoteGPC - Free Report) . Shares have added about 1.7% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is Genuine Parts due for a pullback? Well, first let's take a quick look at the latest earnings report in order to get a better handle on the recent catalysts for Genuine Parts Company before we dive into how investors and analysts have reacted as of late.

Genuine Parts Beats Q2 Earnings Estimates

Genuine Parts reported second-quarter 2025 adjusted earnings of $2.10 per share, which beat the Zacks Consensus Estimate of $2.08. The bottom line, however, declined from the year-ago quarter’s earnings of $2.44 per share. The company reported net sales of $6.16 billion, which surpassed the Zacks Consensus Estimate of $6.11 billion and grew 3.4% year over year. The increase was driven by a 2.06% contribution from acquisitions, a 0.6% boost from favorable currency exchange and a 0.2% rise in comparable sales.

Segmental Performance

The Automotive segment’s net sales totaled $3.9 billion in the reported quarter, up 5% year over year, largely on acquisition benefits. The sales also surpassed our estimate of $3.84 billion. The segment’s comparable sales grew 0.4% year over year. EBITDA from the unit decreased 6.9% to $338 million. EBITDA margin came in at 8.6%, down 110 basis points from the year-ago period.

The Industrial Parts segment’s net sales rose 0.7% year over year to $2.3 billion courtesy of acquisition benefits. The sales also beat our estimate of $2.26 billion. The segment’s comparable sales decreased 0.1% in the reported quarter. EBITDA grew 1.1% to $288 million, with a margin of 12.8%, up 10 basis points year over year.

Financial Performance

Genuine Parts had cash and cash equivalents worth $458 million as of June 30, 2025, down from $480 million as of Dec. 31, 2024. Long-term debt increased to $3,744 million from $3,742 million as of Dec. 31, 2024. The company exited the second quarter with $1.5 billion in total liquidity.

2025 Guidance

For 2025, Genuine Parts expects overall sales growth of 1-3% versus the prior guided range of 2-4%. Automotive sales are now anticipated to increase 1.5-3.5%, compared with the previous forecast of 2-4%. Expectations for industrial sales growth were trimmed to 1-3% from 2-4% projected earlier.

The company now envisions adjusted earnings per share between $7.50 and $8 compared with the prior guided range of $7.75-$8.25. Operating cash flow is expected in the band of $1.1-$1.3 billion versus the previous guidance of $1.2-$1.4 billion. The FCF projection was also narrowed to $700-$900 million from $800 million-$1 billion forecast earlier.

How Have Estimates Been Moving Since Then?

Since the earnings release, investors have witnessed a downward trend in fresh estimates.

VGM Scores

At this time, Genuine Parts has a poor Growth Score of F, however its Momentum Score is doing a bit better with a D. However, the stock was allocated a grade of B on the value side, putting it in the second quintile for this investment strategy.

Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise Genuine Parts has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.