Genuine Parts (NYSE:GPC) Issues Quarterly Earnings Results

Genuine Parts (NYSE:GPC) released its quarterly earnings data on Tuesday. The specialty retailer reported $1.55 EPS for the quarter, missing analysts’ consensus estimates of $1.79 by ($0.24), Briefing.com reports. Genuine Parts had a return on equity of 22.57% and a net margin of 3.36%.The firm had revenue of $6.01 billion during the quarter, compared to analysts’ expectations of $6.06 billion. During the same quarter last year, the business earned $1.61 earnings per share. The business’s revenue for the quarter was up 4.1% compared to the same quarter last year. Genuine Parts updated its FY 2026 guidance to 7.500-8.000 EPS.

Here are the key takeaways from Genuine Parts’ conference call:

• Announced intent to separate into two publicly traded companies — Global Automotive (NAPA-focused) and Global Industrial (Motion) — targeting completion in Q1 2027 to enable more focused strategies, tailored investments, and clearer capital allocation.
• Full-year sales were $24.3 billion (+3.5%) with gross margin expansion, but results fell short of expectations due to weaker-than-forecast Q4 sales, notably in Europe and lower sales to U.S. independent NAPA owners.
• Recorded significant one-time fourth-quarter adjustments of ~$1.1 billion pre-tax (~$825M after-tax), including a $742M pension settlement, ~$150M expected loss from First Brands receivables, a $103M asbestos reserve increase, plus restructuring and accounting charges, which materially reduced GAAP earnings.
• 2026 guidance calls for adjusted EPS $7.50–$8.00 (GAAP EPS $6.10–$6.60), total sales growth of 3%–5.5%, consolidated adjusted EBITDA of $2.0B–$2.2B, and improved operating cash flow ($1.0B–$1.2B), signaling management expects recovery and margin expansion despite headwinds.
• Board approved a 3.2% dividend increase (70th consecutive annual raise); company plans ~ $450M–$500M CapEx and $300M–$350M in M&A for 2026 and expects both standalones to target investment?grade ratings, indicating balanced investment and shareholder-return priorities.

Genuine Parts Stock Performance

Shares of NYSE:GPC traded down $18.94 on Tuesday, hitting $128.22. 1,008,012 shares of the company were exchanged, compared to its average volume of 1,137,664. The company’s 50 day moving average price is $133.74 and its two-hundred day moving average price is $133.66. The firm has a market capitalization of $17.84 billion, a price-to-earnings ratio of 22.10 and a beta of 0.74. The company has a debt-to-equity ratio of 0.78, a quick ratio of 0.51 and a current ratio of 1.14. Genuine Parts has a one year low of $104.01 and a one year high of $151.57.

Analyst Ratings Changes

Several analysts have weighed in on GPC shares. Truist Financial boosted their price target on Genuine Parts from $146.00 to $162.00 and gave the stock a “buy” rating in a research report on Thursday, February 12th. UBS Group reaffirmed a “neutral” rating on shares of Genuine Parts in a research note on Wednesday, February 11th. The Goldman Sachs Group upgraded shares of Genuine Parts from a “sell” rating to a “neutral” rating and raised their price objective for the company from $130.00 to $142.00 in a research note on Thursday, November 13th. JPMorgan Chase & Co. boosted their target price on Genuine Parts from $145.00 to $150.00 and gave the stock an “overweight” rating in a report on Thursday, October 23rd. Finally, Evercore set a $175.00 price target on Genuine Parts in a research note on Wednesday, February 11th. One analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating and three have given a Hold rating to the company. According to data from MarketBeat, Genuine Parts has a consensus rating of “Moderate Buy” and an average target price of $154.83.

Hedge Funds Weigh In On Genuine Parts

Several large investors have recently made changes to their positions in GPC. Baupost Group LLC MA acquired a new stake in shares of Genuine Parts in the 3rd quarter valued at approximately $193,347,000. Balyasny Asset Management L.P. acquired a new position in Genuine Parts during the 3rd quarter worth approximately $61,321,000. Morgan Stanley lifted its stake in shares of Genuine Parts by 16.6% in the fourth quarter. Morgan Stanley now owns 2,512,478 shares of the specialty retailer’s stock valued at $308,935,000 after buying an additional 357,979 shares in the last quarter. AQR Capital Management LLC raised its stake in shares of Genuine Parts by 252.7% in the second quarter. AQR Capital Management LLC now owns 292,880 shares of the specialty retailer’s stock worth $35,304,000 after purchasing an additional 209,833 shares during the last quarter. Finally, Alliancebernstein L.P. grew its holdings in Genuine Parts by 106.9% during the third quarter. Alliancebernstein L.P. now owns 346,772 shares of the specialty retailer’s stock worth $48,063,000 after buying an additional 179,207 shares in the last quarter. Institutional investors and hedge funds own 78.83% of the company’s stock.

Key Headlines Impacting Genuine Parts

Here are the key news stories impacting Genuine Parts this week:

• Positive Sentiment: Company announced a plan to separate into two publicly traded businesses (Global Automotive and Global Industrial). Management says the separation is tax?free, targeted to complete in Q1 2027 and intended to unlock shareholder value and sharpen strategic focus. Article Title
• Positive Sentiment: Declared a dividend increase, marking the company’s 70th consecutive year of dividend growth — a sign of management confidence and shareholder returns. Article Title
• Neutral Sentiment: Revenue grew ~4.1% year?over?year in Q4, showing underlying top?line expansion, though details and comparability will matter as investors parse margins and segment performance. Article Title
• Neutral Sentiment: Company plans investor days in H2 2026 for both new companies and held a conference call/posted slides today — these presentations will be important for details on separation timing, cost estimates, and pro forma financials. Article Title
• Negative Sentiment: Q4 EPS of $1.55 missed consensus (Zacks/Street ~ $1.79–$1.80) and declined vs prior year $1.61 — the earnings shortfall is the immediate catalyst for the sell?off. Article Title
• Negative Sentiment: FY?2026 EPS guidance of $7.50–$8.00 came in below the consensus (~$8.41), raising questions on margins and growth assumptions for the combined business going forward. Article Title
• Negative Sentiment: Media and market coverage note the stock dropped sharply on the combined effect of the earnings miss and below?consensus guidance. Monitor near?term volatility and analyst reactions. Article Title

Genuine Parts Company Profile

Genuine Parts Company (NYSE: GPC) is a global distributor of automotive replacement parts, industrial parts and business products with a history dating back to 1928. Headquartered in Atlanta, Georgia, the company operates a broad distribution network and retail presence serving repair shops, independent retailers, industrial customers and commercial accounts. Its business model centers on stocking and delivering a wide range of parts and supplies to support aftermarket and maintenance needs across multiple end markets.

Genuine Parts conducts its operations through several well-known operating groups and subsidiaries.