Core Viewpoint - Genuine Parts reported a mixed performance in its latest earnings report, with adjusted earnings per share beating estimates but declining year over year, while net sales exceeded expectations and showed year-over-year growth [2][5]. Financial Performance - Adjusted earnings for Q2 2025 were $2.10 per share, surpassing the Zacks Consensus Estimate of $2.08 but down from $2.44 in the same quarter last year [2]. - Net sales reached $6.16 billion, exceeding the Zacks Consensus Estimate of $6.11 billion, reflecting a 3.4% year-over-year increase driven by acquisitions, favorable currency exchange, and comparable sales growth [2]. - Cash and cash equivalents decreased to $458 million from $480 million as of December 31, 2024, while long-term debt slightly increased to $3,744 million [5]. Segmental Performance - The Automotive segment reported net sales of $3.9 billion, a 5% increase year over year, driven by acquisitions, although EBITDA decreased by 6.9% to $338 million [3]. - The Industrial Parts segment's net sales rose 0.7% year over year to $2.3 billion, with EBITDA growing 1.1% to $288 million [4]. 2025 Guidance - The company revised its overall sales growth expectation for 2025 to 1-3%, down from the previous 2-4% forecast, with automotive sales now expected to grow 1.5-3.5% [6]. - Adjusted earnings per share guidance was narrowed to a range of $7.50 to $8, compared to the prior range of $7.75 to $8.25 [7]. Market Reaction - Following the earnings release, there has been a downward trend in fresh estimates for the company [8]. - The stock currently holds a poor Growth Score of F and a Momentum Score of D, but a better Value Score of B [9]. Outlook - The overall trend in estimates has been downward, leading to a Zacks Rank of 4 (Sell), indicating expectations of below-average returns in the coming months [11].

Core Insights - Genuine Parts Company (GPC) reported second-quarter 2025 adjusted earnings of $2.10 per share, exceeding the Zacks Consensus Estimate of $2.08, but down from $2.44 per share in the same quarter last year [1][9] - The company achieved net sales of $6.16 billion, surpassing the Zacks Consensus Estimate of $6.11 billion, reflecting a year-over-year growth of 3.4% driven by acquisitions, favorable currency exchange, and a slight rise in comparable sales [1][9] Segmental Performance - The Automotive segment's net sales reached $3.9 billion, a 5% increase year over year, benefiting from acquisitions and exceeding the estimate of $3.84 billion; however, EBITDA decreased by 6.9% to $338 million, with an EBITDA margin of 8.6%, down 110 basis points from the previous year [3] - The Industrial Parts segment's net sales grew by 0.7% year over year to $2.3 billion, also aided by acquisitions, and surpassed the estimate of $2.26 billion; EBITDA increased by 1.1% to $288 million, with a margin of 12.8%, up 10 basis points year over year [4] Financial Performance - As of June 30, 2025, the company had cash and cash equivalents of $458 million, down from $480 million at the end of 2024; long-term debt slightly increased to $3,744 million from $3,742 million [5] - GPC exited the second quarter with total liquidity of $1.5 billion [5] 2025 Guidance Revision - For 2025, GPC revised its overall sales growth expectation to 1-3%, down from the previous range of 2-4%; automotive sales are now anticipated to grow by 1.5-3.5%, and industrial sales growth expectations were trimmed to 1-3% from 2-4% [6] - The company now projects adjusted earnings per share between $7.50 and $8, down from the prior range of $7.75-$8.25; operating cash flow is expected to be between $1.1 billion and $1.3 billion, and free cash flow is narrowed to $700-$900 million from the previous forecast of $800 million-$1 billion [7]

For the quarter ended June 2025, Genuine Parts (GPC) reported revenue of $6.16 billion, up 3.4% over the same period last year. EPS came in at $2.10, compared to $2.44 in the year-ago quarter. Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance. Here is how Genuine Parts performed in the just reported quarter in terms of the metrics most ...