Yahoo Finance Genuine Parts (GPC) to Report Q1 Earnings: What's in Store?
Genuine Parts Company GPC is slated to release first-quarter 2023 results on Apr 20, before market open.
The Zacks Consensus Estimate for earnings per share is pegged at $2.02, implying growth of 8.60% from the year-ago reported number. However, the consensus estimate has moved south by a penny in the past 7 days.
The Zacks Consensus Estimate for revenues is pegged at $5.69 billion, suggesting a year-over-year increase of 7.39%. Over the trailing four quarters, Genuine Parts surpassed earnings estimates in each occasion, the average surprise being 9.02%. This is depicted in the graph below:
Genuine Parts Company Price and EPS Surprise
Genuine Parts Company price-eps-surprise | Genuine Parts Company Quote
Q4 Highlights
In fourth-quarter 2022, GPC’s adjusted earnings per share of $2.05 surpassed the consensus mark of $1.90 and rose 14.5% year over year. Higher-than-expected sales and operating profits across both its segments resulted in this outperformance. The company reported net sales of $5,524 million, outpacing the Zacks Consensus Estimate of $5,349 million. The top line rose 15% year over year.
Factors at Play
The increasing longevity of vehicles is serving as a key catalyst for auto replacement and repair companies. This is likely to have boosted demand for GPC’s products, thereby aiding its revenues.
Segment wise, the Zacks Consensus Estimate for first-quarter revenues from Automotive and Industrial is pegged at $3,462 million and $2,218 million, indicating a rise from $3,433 million and $2,091 million recorded in the previous quarter, respectively.
However, the company is bearing the brunt of increasing selling, general and administrative costs since several quarters, which is denting operating profits. The trend is likely to continue in the near term.
The Zacks Consensus Estimate for operating profit from Automotive and Industrial is pegged at $291 million and $225 million, indicating a decline from $295 million and $230 million recorded in the previous quarter, respectively.
With technology shift in full swing, GPC is focused on developing and upgrading its offerings to remain on par with the evolving trends in the automotive market. The new features and component designs call for high capex requirements, thereby limiting cash flows.
The company expects the capital expenditure for 2023 to be in the range of $375-$400 million, an increase from 2022 level of $340 million. This further dims outlook for first-quarter 2023 results.
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. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Earnings ESP: GPC has an Earnings ESP of -3.18%. This is because the Most Accurate Estimate is pegged 6 cents lower than the Zacks Consensus Estimate.
Zacks Rank: GPC currently carries a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Stocks With 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.
Autoliv ALV will release first-quarter 2023 results on Apr 21. It has an Earnings ESP of +4.59% and a Zacks Rank #2.
The Zacks Consensus Estimate for Autoliv’s to-be-reported quarter’s earnings and revenues is pegged at 82 cents per share and $2.21 billion, respectively. ALV surpassed earnings estimates in two of the trailing four quarters and missed twice in fiscal 2022, the average surprise being 9.79%.
Polaris PII will release first-quarter 2023 results on Apr 25. It has an Earnings ESP of +3.85% and a Zacks Rank #3.
The Zacks Consensus Estimate for Polaris’s to-be-reported quarter’s earnings and revenues is pegged at $1.73 per share and $1.91 billion, respectively. PII surpassed earnings estimates in three of the trailing four quarters and missed once in fiscal 2022, the average surprise being 2.16%.
Lear LEA will release first-quarter 2023 results on Apr 27. It has an Earnings ESP of +2.57% and a Zacks Rank #3.
The Zacks Consensus Estimate for Lear’s to-be-reported quarter’s earnings and revenues is pegged at $2.47 cents per share and $5.28 billion, respectively. LEA surpassed earnings estimates in all the trailing four quarters in fiscal 2022, the average surprise being 17.12%.
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Genuine Parts Company (GPC) : Free Stock Analysis Report
Autoliv, Inc. (ALV) : Free Stock Analysis Report
Lear Corporation (LEA) : Free Stock Analysis Report
Polaris Inc. (PII) : Free Stock Analysis Report
