Genuine Parts (GPC) to Report Q3 Earnings: What's in the Cards?
Genuine Parts Company GPC is slated to release third-quarter 2023 results on Oct 19, before market open.
The Zacks Consensus Estimate for earnings per share is pinned at $2.40, implying growth of 7.6% from the year-ago reported number. The consensus estimate has moved north by a penny in the past 90 days.
The Zacks Consensus Estimate for revenues is pegged at $5.89 billion, suggesting a year-over-year increase of 3.75%. Over the trailing four quarters, Genuine Parts surpassed earnings estimates on each occasion, the average surprise being 7.10%. 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 2023, GPC’s adjusted earnings per share of $2.44 surpassed the consensus mark of $2.33 and rose by 10.9% year over year. High year-over-year operating profits across the Automotive segment and Industrial Parts segment resulted in the outperformance. The company reported net sales of $5,915 million, lagging the Zacks Consensus Estimate of $5,938 million. The top line, however, rose 5.6% year over year.
Factors at Play
Genuine Parts is also riding high on strategic acquisitions. The Kaman Distribution Group buyout, completed in January 2022, has strengthened Genuine Parts’ market-leading position in the North American industrial platform. The buyout is expected to generate more than $50 million in annual run-rate synergies over three years. The buyout of Inneco has expanded the industrial footprint of Genuine Parts into Australasia. These buyouts are likely to boost the results of the upcoming quarter.
Segment-wise, our estimate for third-quarter revenues from the Automotive unit is pegged at $3,655.4 million, indicating a rise from $3,490.5 million recorded in the previous quarter. Our estimate for third-quarter revenues from Industrial is pinned at $2,212.7 million, indicating a rise from $2,184.8 million recorded in the previous quarter.
However, the company has been bearing the brunt of increasing selling, general and administrative costs for the past several quarters, denting operating profits and the trend is likely to continue. The company is developing and upgrading its offerings to remain on par with the evolving trends in the automotive market, which requires high capital spending. Increased expenditure is likely to hurt the margins of the to-be-reported quarter.
Earnings Whispers
Our proven model does not conclusively predict an earnings beat for GPC this time around. Per our mode, a positive Earnings ESP, when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), increases the odds of an earnings beat.
Earnings ESP: GPC has an Earnings ESP of -0.54%. This is because the Most Accurate Estimate is pegged a penny lower than 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: GPC currently carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Stocks With the Favorable Combination
Here are a few players from the auto space that, according to our model, have the right combination of elements to post an earnings beat this time around.
PACCAR PCAR will release third-quarter 2023 results on Oct 24. The company has an Earnings ESP of +3.34% and a Zacks Rank #2.
The Zacks Consensus Estimate for PACCAR’s to-be-reported quarter’s earnings and revenues is pegged at $2.06 per share and $7.98 billion, respectively. PCAR surpassed earnings estimates in all of the trailing four quarters, the average surprise being 15.21%.
Oshkosh Corporation OSK will release third-quarter 2023 results on Oct 26. The company has an Earnings ESP of +8.24% and a Zacks Rank #3.
The Zacks Consensus Estimate for Oshkosh’s to-be-reported quarter’s earnings and revenues is pinned at $2.18 per share and $2.46 billion, respectively. OSK surpassed earnings estimates twice in the trailing four quarters and missed twice, the average surprise being 27.45%.
Cummins CMI will release third-quarter 2023 results on Nov 2. The company has an Earnings ESP of +0.48% and carries a Zacks Rank #3.
The Zacks Consensus Estimate for Cummins’ to-be-reported quarter’s earnings and revenues is pegged at $4.70 per share and $8.19 billion, respectively. CMI surpassed earnings estimates in one of the trailing four quarters and missed thrice, the average negative surprise being 5.51%.
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Genuine Parts Company (GPC) : Free Stock Analysis Report
Cummins Inc. (CMI) : Free Stock Analysis Report
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Oshkosh Corporation (OSK) : Free Stock Analysis Report
