Genuine Parts Shares Plunge 12% After Earnings Miss and Weak 2026 Outlook

Core Viewpoint - Genuine Parts Company reported disappointing fourth-quarter earnings and provided weaker-than-expected guidance for 2026, resulting in a significant drop in share price [1] Financial Performance - Adjusted earnings per share for the fourth quarter were $1.55, below the consensus estimate of $1.81 [1] - Revenue for the quarter was $6.0 billion, missing the forecast of $6.06 billion, but representing a 4.1% increase year-over-year [1][2] - The revenue growth was attributed to a 1.7% rise in comparable sales, a 1.5% contribution from acquisitions, and a 0.9% favorable impact from foreign exchange and other factors [2] Charges and Losses - The quarterly performance was impacted by $160 million in non-recurring charges, primarily related to anticipated credit losses from a vendor's Chapter 11 bankruptcy filing [2] Future Guidance - For 2026, the company projected adjusted earnings in the range of $7.50 to $8.00 per share, which is below the consensus estimate of $8.42 [3] - Management anticipates total sales growth between 3% and 5.5% in 2026 [3] Strategic Moves - Genuine Parts announced plans to separate its automotive and industrial operations into two independent publicly traded entities, aiming to unlock additional value for shareholders [3]