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Can Genuine Parts (GPC) Beat Estimates This Earnings Season?
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Genuine Parts Company (GPC - Free Report) is slated to release first-quarter 2022 results on Apr 21, before the opening bell. The Zacks Consensus Estimate for the quarter’s earnings and revenues is pegged at $1.70 and $5.13 billion, respectively.
The Zacks Consensus Estimate for Genuine Parts’ first-quarter earnings per share has been unchanged over the past 30 days. The bottom-line projection implies year-over-year growth of 13.3%. The Zacks Consensus Estimate for quarterly revenues suggests a year-over-year increase of 15%.
This Atlanta, GA-based automotive replacement parts supplier recorded better-than-anticipated earnings in the last reported quarter. The bottom line also grew 17.8% year over year on robust sales growth coupled with ongoing gross-margin improvement initiatives and expenses control actions. Over the trailing four quarters, Genuine Parts surpassed earnings estimates on all occasions, with the average being 15%. This is depicted in the graph below:
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 +1.89%. This is because the Most Accurate Estimate is pegged 3 cents above 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 first-quarter 2022. Consequently, the Zacks Consensus Estimate for the automotive unit’s revenues is pegged at $3,219 million, indicating an increase from $2,953 million recorded in the year-ago period.
The Zacks Consensus Estimate for revenues from the Industrial Parts unit is $1,912, suggesting growth from $1,512 generated in the year-ago period. The segmental revenues are likely to have gotten 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 $155 million, calling for an increase from $125 million recorded in first-quarter 2021.
Other Stocks With Favorable Combination
Here are a few other stocks in the auto space, which, according to our model, also have the right combination of elements to post an earnings beat for the quarter to be reported:
Allison Transmission (ALSN - Free Report) has an Earnings ESP of +10.35% and a Zacks Rank #3. The stock is set to report first-quarter 2022 earnings on Apr 27.
The Zacks Consensus Estimate for Allison’s to-be-reported quarter’s earnings and revenues is pegged at $1.16 per share and $642 million, respectively. Encouragingly, ALSN surpassed earnings estimates in the last four quarters, with an average of 13.4%.
LKQ Corp (LKQ - Free Report) has an Earnings ESP of +0.37% and a Zacks Rank #3. The stock is set to report first-quarter 2022 earnings on Apr 28.
The Zacks Consensus Estimate for LKQ’s to-be-reported quarter’s earnings and revenues is pegged at 91 cents per share and $3.28 billion, respectively. Encouragingly, LKQ surpassed earnings estimates in the last four quarters, with an average of 33.9%.
Cummins, Inc. (CMI - Free Report) has an Earnings ESP of +1.68% and a Zacks Rank #3. The stock is set to report first-quarter 2022 earnings on May 3.
The Zacks Consensus Estimate for Cummins’ to-be-reported quarter’s earnings and revenues is pegged at $3.55 per share and $6.02 billion, respectively. Over the trailing four quarters, CMI surpassed earnings estimates twice for as many misses, with an average surprise of 0.5%.
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Can Genuine Parts (GPC) Beat Estimates This Earnings Season?
Genuine Parts Company (GPC - Free Report) is slated to release first-quarter 2022 results on Apr 21, before the opening bell. The Zacks Consensus Estimate for the quarter’s earnings and revenues is pegged at $1.70 and $5.13 billion, respectively.
The Zacks Consensus Estimate for Genuine Parts’ first-quarter earnings per share has been unchanged over the past 30 days. The bottom-line projection implies year-over-year growth of 13.3%. The Zacks Consensus Estimate for quarterly revenues suggests a year-over-year increase of 15%.
This Atlanta, GA-based automotive replacement parts supplier recorded better-than-anticipated earnings in the last reported quarter. The bottom line also grew 17.8% year over year on robust sales growth coupled with ongoing gross-margin improvement initiatives and expenses control actions. Over the trailing four quarters, Genuine Parts surpassed earnings estimates on all occasions, with the average being 15%. This is depicted in the graph below:
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 +1.89%. This is because the Most Accurate Estimate is pegged 3 cents above 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 3. 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 first-quarter 2022. Consequently, the Zacks Consensus Estimate for the automotive unit’s revenues is pegged at $3,219 million, indicating an increase from $2,953 million recorded in the year-ago period.
The Zacks Consensus Estimate for revenues from the Industrial Parts unit is $1,912, suggesting growth from $1,512 generated in the year-ago period. The segmental revenues are likely to have gotten 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 $155 million, calling for an increase from $125 million recorded in first-quarter 2021.
Other Stocks With Favorable Combination
Here are a few other stocks in the auto space, which, according to our model, also have the right combination of elements to post an earnings beat for the quarter to be reported:
Allison Transmission (ALSN - Free Report) has an Earnings ESP of +10.35% and a Zacks Rank #3. The stock is set to report first-quarter 2022 earnings on Apr 27.
The Zacks Consensus Estimate for Allison’s to-be-reported quarter’s earnings and revenues is pegged at $1.16 per share and $642 million, respectively. Encouragingly, ALSN surpassed earnings estimates in the last four quarters, with an average of 13.4%.
LKQ Corp (LKQ - Free Report) has an Earnings ESP of +0.37% and a Zacks Rank #3. The stock is set to report first-quarter 2022 earnings on Apr 28.
The Zacks Consensus Estimate for LKQ’s to-be-reported quarter’s earnings and revenues is pegged at 91 cents per share and $3.28 billion, respectively. Encouragingly, LKQ surpassed earnings estimates in the last four quarters, with an average of 33.9%.
Cummins, Inc. (CMI - Free Report) has an Earnings ESP of +1.68% and a Zacks Rank #3. The stock is set to report first-quarter 2022 earnings on May 3.
The Zacks Consensus Estimate for Cummins’ to-be-reported quarter’s earnings and revenues is pegged at $3.55 per share and $6.02 billion, respectively. Over the trailing four quarters, CMI surpassed earnings estimates twice for as many misses, with an average surprise of 0.5%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.