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Why Is Genuine Parts (GPC) Down 16.7% Since Last Earnings Report?
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It has been about a month since the last earnings report for Genuine Parts (GPC - Free Report) . Shares have lost about 16.7% in that time frame, underperforming the S&P 500.
But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Genuine Parts due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its latest earnings report in order to get a better handle on the important drivers.
Genuine Parts Misses Q4 Earnings Estimates
Genuine Partsreported fourth-quarter 2025 adjusted earnings of $1.55 per share, which missed the Zacks Consensus Estimate of $1.79. The bottom line fell from the year-ago quarter’s earnings of $1.61 per share.
The company reported net sales of $6.01 billion, which marginally missed the Zacks Consensus Estimate of $6.04 billion but grew 4.2 % year over year. The increase was driven by a 1.7% contribution from comparable sales, a 1.5% boost from acquisitions and a 0.9% favorable impact from forex transactions.
Genuine Parts has announced plans to split into two independent publicly traded companies, and the transaction is expected to close in the first quarter of 2027. One entity will comprise its Automotive Parts Group (Global Automotive), while the other will consist of its Industrial Parts Group (Global Industrial).
In the fourth quarter of 2025, the company reorganized its Automotive Parts Group into two separate business segments. The North America Automotive Parts Group (North America Automotive) now includes all automotive operations in the United States and Canada, while the International Automotive Parts Group (International Automotive) comprises automotive operations across Europe and Australasia.
Segmental Performance
The North America Automotive segment’s net sales totaled $2.33 billion in the reported quarter, up 2.4% year over year, thanks to comps growth and acquisition benefits, partially offset by the unfavorable impact of other. The sales, however, missed our estimate of $2.44 billion. The segment’s comparable sales grew 1.7% year over year. EBITDA from the unit fell 14% to $129 million. EBITDA margin came in at 5.5%, down 110 basis points from the year-ago period.
The International Automotive segment’s net sales totaled $1.49 billion in the reported quarter, up 6.4% year over year, due to favorable impact of foreign currency, benefit from acquisitions, partially offset by decrease in comparable sales. The sales surpassed our estimate of $1.42 billion. The segment’s comparable sales declined 0.9% year over year. EBITDA from the unit fell 4.3% to $129 million. EBITDA margin came in at 8.7%, down 100 basis points from the year-ago period.
The Industrial Parts segment’s net sales rose 4.6% year over year to $2.2 billion, courtesy of acquisition benefits, comps growth and favorable forex transactions. The sales beat our estimate of $2.18 billion. The segment’s comparable sales rose 3.4% in the reported quarter. EBITDA grew 8.7% to $295 million, with a margin of 13.4%, up 50 basis points year over year.
Financial Performance
Genuine Parts had cash and cash equivalents worth $477 million as of Dec. 31, 2025, down from $480 million as of Dec. 31, 2024. Long-term debt was $3.5 billion at the end of the fourth quarter.
The company raised its quarterly dividend by 3.2% to $1.0625 per common share, which will be paid on April 2, 2026, to shareholders of record as of March 6, 2026. This marks the 70th consecutive year the company has increased its annual dividend paid to shareholders.
2026 Guidance
For 2026, Genuine Parts expects overall sales growth of 3-5.5%. North America Automotive sales are now anticipated in the range of 3-5%. International Automotive sales growth is expected in the range of 3-6%.
Expectations for industrial sales growth are expected to be in the band of 3-6%.
The company now envisions adjusted earnings per share between $7.50 and $8.00. Operating cash flow is expected in the band of $1-$1.2 billion. The FCF is expected to be in the range of $550-$700 million.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in fresh estimates.
VGM Scores
Currently, Genuine Parts has a average Growth Score of C, a score with the same score on the momentum front. Charting a somewhat similar path, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. 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. Interestingly, Genuine Parts has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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Why Is Genuine Parts (GPC) Down 16.7% Since Last Earnings Report?
It has been about a month since the last earnings report for Genuine Parts (GPC - Free Report) . Shares have lost about 16.7% in that time frame, underperforming the S&P 500.
But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Genuine Parts due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its latest earnings report in order to get a better handle on the important drivers.
Genuine Parts Misses Q4 Earnings Estimates
Genuine Parts reported fourth-quarter 2025 adjusted earnings of $1.55 per share, which missed the Zacks Consensus Estimate of $1.79. The bottom line fell from the year-ago quarter’s earnings of $1.61 per share.
The company reported net sales of $6.01 billion, which marginally missed the Zacks Consensus Estimate of $6.04 billion but grew 4.2 % year over year. The increase was driven by a 1.7% contribution from comparable sales, a 1.5% boost from acquisitions and a 0.9% favorable impact from forex transactions.
Genuine Parts has announced plans to split into two independent publicly traded companies, and the transaction is expected to close in the first quarter of 2027. One entity will comprise its Automotive Parts Group (Global Automotive), while the other will consist of its Industrial Parts Group (Global Industrial).
In the fourth quarter of 2025, the company reorganized its Automotive Parts Group into two separate business segments. The North America Automotive Parts Group (North America Automotive) now includes all automotive operations in the United States and Canada, while the International Automotive Parts Group (International Automotive) comprises automotive operations across Europe and Australasia.
Segmental Performance
The North America Automotive segment’s net sales totaled $2.33 billion in the reported quarter, up 2.4% year over year, thanks to comps growth and acquisition benefits, partially offset by the unfavorable impact of other. The sales, however, missed our estimate of $2.44 billion. The segment’s comparable sales grew 1.7% year over year. EBITDA from the unit fell 14% to $129 million. EBITDA margin came in at 5.5%, down 110 basis points from the year-ago period.
The International Automotive segment’s net sales totaled $1.49 billion in the reported quarter, up 6.4% year over year, due to favorable impact of foreign currency, benefit from acquisitions, partially offset by decrease in comparable sales. The sales surpassed our estimate of $1.42 billion. The segment’s comparable sales declined 0.9% year over year. EBITDA from the unit fell 4.3% to $129 million. EBITDA margin came in at 8.7%, down 100 basis points from the year-ago period.
The Industrial Parts segment’s net sales rose 4.6% year over year to $2.2 billion, courtesy of acquisition benefits, comps growth and favorable forex transactions. The sales beat our estimate of $2.18 billion. The segment’s comparable sales rose 3.4% in the reported quarter. EBITDA grew 8.7% to $295 million, with a margin of 13.4%, up 50 basis points year over year.
Financial Performance
Genuine Parts had cash and cash equivalents worth $477 million as of Dec. 31, 2025, down from $480 million as of Dec. 31, 2024. Long-term debt was $3.5 billion at the end of the fourth quarter.
The company raised its quarterly dividend by 3.2% to $1.0625 per common share, which will be paid on April 2, 2026, to shareholders of record as of March 6, 2026. This marks the 70th consecutive year the company has increased its annual dividend paid to shareholders.
2026 Guidance
For 2026, Genuine Parts expects overall sales growth of 3-5.5%. North America Automotive sales are now anticipated in the range of 3-5%. International Automotive sales growth is expected in the range of 3-6%.
Expectations for industrial sales growth are expected to be in the band of 3-6%.
The company now envisions adjusted earnings per share between $7.50 and $8.00. Operating cash flow is expected in the band of $1-$1.2 billion. The FCF is expected to be in the range of $550-$700 million.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in fresh estimates.
VGM Scores
Currently, Genuine Parts has a average Growth Score of C, a score with the same score on the momentum front. Charting a somewhat similar path, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. 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. Interestingly, Genuine Parts has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.