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Genuine Parts (GPC) Gears Up for Q4 Earnings: Factors at Play
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Genuine Parts Company (GPC - Free Report) is slated to release fourth-quarter 2021 results on Feb 17, before the opening bell. The Zacks Consensus Estimate for the quarter’s earnings and revenues is pegged at $1.61 and $4.67 billion, respectively.
The Zacks Consensus Estimate for Genuine Parts’ fourth-quarter earnings per share has been revised upward over the past seven days. The bottom-line projection implies year-over-year growth of 6%. The Zacks Consensus Estimate for quarterly revenues suggests a year-over-year increase of 10%.
This Atlanta, GA-based automotive replacement parts supplier recorded better-than-anticipated earnings in the last reported quarter. This outperformance stemmed from robust contributions across both the segments of the company. Over the trailing four quarters, Genuine Parts surpassed earnings estimates on all occasions, with the average being 16%. This is depicted in the graph below:
Our proven model predicts an earnings beat for Genuine Parts this time around as well. The 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, which is not the case here.
Earnings ESP: Genuine Parts has an Earnings ESP of +10.16%. This is because the Most Accurate Estimate is pegged 16 cents higher than the Zacks Consensus Estimate. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Per IHS Markit, the average age of passenger cars and light trucks hit a record high of 12.1 years. This boosted the demand for Genuine Parts’ offerings, which will positively reflect on the upcoming results. Also, bolt-on acquisitions of Winparts, Rare Spares and PARts DB are expected to have boosted the firm’s top line in fourth-quarter 2021. Consequently, the Zacks Consensus Estimate for the automotive unit’s revenues is pegged at $3,090 million, indicating an increase from $2,822 million recorded in the year-ago period.
The Zacks Consensus Estimate for revenues from the Industrial Parts unit is $1593, suggesting growth from $1,430 generated in the year-ago period. The segment’s fourth-quarter 2021 revenues may have got a boost from the Inneco buyout, which also expanded the industrial footprint of Genuine Parts to Australasia. The consensus mark for the segment’s operating profit is pegged at $145 million, calling for an increase from $133 million recorded in fourth-quarter 2020.
On the flip side, GPC has been bearing the brunt of increasing SG&A costs over the past several quarters, and the trend is likely to have continued this time as well. The company has been engaged in developing and upgrading offerings to remain on par with the evolving trends in the automotive market. This is likely to have flared up R&D expenses and weighed on operating profits. Evidently, the consensus mark for operating profit from the Automotive unit is $238 million, suggesting a marginal decline from $240 million generated in fourth-quarter 2020.
What to Expect From Q4 Releases of GPC’s Peers
LKQ Corp. (LKQ - Free Report) is set to report fourth-quarter 2021 earnings on Feb 17. LKQ surpassed earnings estimates in the last four quarters, with an average of 34.4%. Our proven model doesn’t conclusively predict an earnings beat for LKQ this time around.
LKQ Corp. has an Earnings ESP of 0.00% and a Zacks Rank #3. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings and revenues is pegged at 77 cents per share and $3.07 billion, respectively. The top-and bottom-line projection implies year-over-year growth of 4% and 12%, respectively.
Dorman Products (DORM - Free Report) is slated to post fourth-quarter 2021 results on Feb 22. DORM surpassed earnings estimates in three of the last four quarters, while matching estimates once. Our proven model doesn’t conclusively predict an earnings beat for Dorman this time around.
Dorman has an Earnings ESP of 0.00% and a Zacks Rank #2. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings and revenues is pegged at $1.35 per share and $365 million, respectively. The top-and bottom-line projection implies year-over-year growth of 21% and 13.4%, respectively.
Standard Motor Products (SMP - Free Report) is slated to report fourth-quarter results on Feb 22. SMP surpassed earnings estimates in the last four quarters, with an average of 67.3%. Our proven model doesn’t conclusively predict an earnings beat for SMP this time around.
Standard Products has an Earnings ESP of 0.00% and a Zacks Rank #2. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings and revenues is pegged at 66 cents per share and $286 million, respectively. While the top-line projection implies year-over-year growth of 1.26%, the bottom-line estimate calls for a decline of 39%.
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Genuine Parts (GPC) Gears Up for Q4 Earnings: Factors at Play
Genuine Parts Company (GPC - Free Report) is slated to release fourth-quarter 2021 results on Feb 17, before the opening bell. The Zacks Consensus Estimate for the quarter’s earnings and revenues is pegged at $1.61 and $4.67 billion, respectively.
The Zacks Consensus Estimate for Genuine Parts’ fourth-quarter earnings per share has been revised upward over the past seven days. The bottom-line projection implies year-over-year growth of 6%. The Zacks Consensus Estimate for quarterly revenues suggests a year-over-year increase of 10%.
This Atlanta, GA-based automotive replacement parts supplier recorded better-than-anticipated earnings in the last reported quarter. This outperformance stemmed from robust contributions across both the segments of the company. Over the trailing four quarters, Genuine Parts surpassed earnings estimates on all occasions, with the average being 16%. This is depicted in the graph below:
Genuine Parts Company Price and EPS Surprise
Genuine Parts Company price-eps-surprise | Genuine Parts Company Quote
Earnings Whispers
Our proven model predicts an earnings beat for Genuine Parts this time around as well. The 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, which is not the case here.
Earnings ESP: Genuine Parts has an Earnings ESP of +10.16%. This is because the Most Accurate Estimate is pegged 16 cents higher 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: Genuine Parts currently carries a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Things to Note
Per IHS Markit, the average age of passenger cars and light trucks hit a record high of 12.1 years. This boosted the demand for Genuine Parts’ offerings, which will positively reflect on the upcoming results. Also, bolt-on acquisitions of Winparts, Rare Spares and PARts DB are expected to have boosted the firm’s top line in fourth-quarter 2021. Consequently, the Zacks Consensus Estimate for the automotive unit’s revenues is pegged at $3,090 million, indicating an increase from $2,822 million recorded in the year-ago period.
The Zacks Consensus Estimate for revenues from the Industrial Parts unit is $1593, suggesting growth from $1,430 generated in the year-ago period. The segment’s fourth-quarter 2021 revenues may have got a boost from the Inneco buyout, which also expanded the industrial footprint of Genuine Parts to Australasia. The consensus mark for the segment’s operating profit is pegged at $145 million, calling for an increase from $133 million recorded in fourth-quarter 2020.
On the flip side, GPC has been bearing the brunt of increasing SG&A costs over the past several quarters, and the trend is likely to have continued this time as well. The company has been engaged in developing and upgrading offerings to remain on par with the evolving trends in the automotive market. This is likely to have flared up R&D expenses and weighed on operating profits. Evidently, the consensus mark for operating profit from the Automotive unit is $238 million, suggesting a marginal decline from $240 million generated in fourth-quarter 2020.
What to Expect From Q4 Releases of GPC’s Peers
LKQ Corp. (LKQ - Free Report) is set to report fourth-quarter 2021 earnings on Feb 17. LKQ surpassed earnings estimates in the last four quarters, with an average of 34.4%. Our proven model doesn’t conclusively predict an earnings beat for LKQ this time around.
LKQ Corp. has an Earnings ESP of 0.00% and a Zacks Rank #3. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings and revenues is pegged at 77 cents per share and $3.07 billion, respectively. The top-and bottom-line projection implies year-over-year growth of 4% and 12%, respectively.
Dorman Products (DORM - Free Report) is slated to post fourth-quarter 2021 results on Feb 22. DORM surpassed earnings estimates in three of the last four quarters, while matching estimates once. Our proven model doesn’t conclusively predict an earnings beat for Dorman this time around.
Dorman has an Earnings ESP of 0.00% and a Zacks Rank #2. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings and revenues is pegged at $1.35 per share and $365 million, respectively. The top-and bottom-line projection implies year-over-year growth of 21% and 13.4%, respectively.
Standard Motor Products (SMP - Free Report) is slated to report fourth-quarter results on Feb 22. SMP surpassed earnings estimates in the last four quarters, with an average of 67.3%. Our proven model doesn’t conclusively predict an earnings beat for SMP this time around.
Standard Products has an Earnings ESP of 0.00% and a Zacks Rank #2. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings and revenues is pegged at 66 cents per share and $286 million, respectively. While the top-line projection implies year-over-year growth of 1.26%, the bottom-line estimate calls for a decline of 39%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.