Genuine Parts pany(US:GPC) ZACKS·2025-10-21 15:46Core Insights - Genuine Parts Company (GPC) reported third-quarter 2025 adjusted earnings of $1.98 per share, missing the Zacks Consensus Estimate of $2.02, but showing an increase from $1.88 per share in the same quarter last year [1][10] - The company achieved net sales of $6.26 billion, exceeding the Zacks Consensus Estimate of $6.13 billion, and reflecting a 5% year-over-year growth driven by comparable sales, acquisitions, and favorable forex impacts [2][10] Segmental Performance - The Automotive segment's net sales reached $4 billion, a 5% increase year over year, surpassing the estimate of $3.87 billion, with comparable sales growing 1.6% and EBITDA increasing 5.9% to $335 million, resulting in an EBITDA margin of 8.4% [3] - The Industrial Parts segment reported net sales of $2.3 billion, up 4.6% year over year, exceeding the estimate of $2.24 billion, with comparable sales rising 3.7% and EBITDA growing 6.6% to $285 million, achieving a margin of 12.6% [4] Financial Performance - As of September 30, 2025, the company had cash and cash equivalents of $431 million, down from $480 million at the end of 2024, with long-term debt standing at $3.75 billion [5] 2025 Guidance - Genuine Parts raised its overall sales growth expectation for 2025 to 3-4% from the previous 1-3%, with automotive sales anticipated to grow 4-5% compared to the earlier forecast of 1.5-3.5%, and industrial sales growth expectations increased to 2-3% from 1-3% [6] - The company now projects adjusted earnings per share between $7.50 and $7.75, maintaining the operating cash flow guidance of $1.1-$1.3 billion and free cash flow projection of $700-$900 million [7] Zacks Rank & Other Key Picks - Genuine Parts currently holds a Zacks Rank 2 (Buy), with other notable stocks in the automotive sector including BRP Inc., Mobileye Global Inc., and Autoliv Inc., with BRP and Mobileye holding a Zacks Rank 1 (Strong Buy) [8]