Genuine Parts (NYSE:GPC) Shares Gap Down on Disappointing Earnings

Genuine Parts Company (NYSE:GPC) shares gapped down before the market opened on Tuesday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $147.16, but opened at $137.38. Genuine Parts shares last traded at $128.9980, with a volume of 524,032 shares traded.

The specialty retailer reported $1.55 EPS for the quarter, missing the consensus estimate of $1.79 by ($0.24). The company had revenue of $6.01 billion for the quarter, compared to analyst estimates of $6.06 billion. Genuine Parts had a return on equity of 22.57% and a net margin of 3.36%.The business’s quarterly revenue was up 4.1% compared to the same quarter last year. During the same period last year, the business earned $1.61 EPS. Genuine Parts has set its FY 2026 guidance at 7.500-8.000 EPS.

Genuine Parts Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, April 2nd. Stockholders of record on Friday, March 6th will be issued a dividend of $1.0625 per share. This is an increase from Genuine Parts’s previous quarterly dividend of $1.03. This represents a $4.25 annualized dividend and a dividend yield of 3.4%. The ex-dividend date is Friday, March 6th. Genuine Parts’s dividend payout ratio (DPR) is currently 70.91%.

Key Headlines Impacting Genuine Parts

Here are the key news stories impacting Genuine Parts this week:

• Positive Sentiment: Board approved a quarterly dividend increase to $1.0625 per share (3.2% hike vs prior quarter), implying a ~3.4% yield — supports income investor demand.
• Positive Sentiment: Management announced a planned tax‑free separation into two publicly traded companies (Global Automotive and Global Industrial) intended to unlock shareholder value and sharpen strategic focus; timeline: separation expected to complete in Q1 2027 with investor days H2 2026. GPC separation PR
• Neutral Sentiment: Company filed the Q4 and full‑year 2025 results and related slide deck/press release (useful for modeling segment impacts and separation assumptions). Q4 & FY2025 results press release
• Neutral Sentiment: Full earnings call transcript and presentation are available for details on margin drivers, working capital and separation mechanics — important for refining projections. Earnings call transcript
• Negative Sentiment: Q4 EPS of $1.55 missed consensus of $1.79 and was down from $1.61 a year ago — a clear near‑term earnings disappointment that pressures the stock. Zacks: Q4 miss
• Negative Sentiment: Q4 revenue $6.01B slightly below analysts’ ~$6.06B estimate (up 4.1% y/y) and company issued FY‑2026 EPS guidance of $7.50–$8.00, below the ~$8.41 consensus — guidance shortfall is the main driver of downside. MarketBeat: results & guidance
• Negative Sentiment: Street reaction: headlines and coverage highlight the miss and the separation plan’s near‑term uncertainty — media reports show shares falling on the news. Investing.com: shares tumble

Wall Street Analysts Forecast Growth

A number of research analysts recently weighed in on the company. Truist Financial upped their price target on Genuine Parts from $146.00 to $162.00 and gave the stock a “buy” rating in a research note on Thursday, February 12th. Evercore set a $175.00 target price on Genuine Parts in a research report on Wednesday, February 11th. UBS Group reissued a “neutral” rating on shares of Genuine Parts in a research report on Wednesday, February 11th. JPMorgan Chase & Co. upped their price objective on shares of Genuine Parts from $145.00 to $150.00 and gave the stock an “overweight” rating in a report on Thursday, October 23rd. Finally, The Goldman Sachs Group raised shares of Genuine Parts from a “sell” rating to a “neutral” rating and raised their price objective for the company from $130.00 to $142.00 in a research note on Thursday, November 13th. One analyst has rated the stock with a Strong Buy rating, four have given a Buy rating and three have given a Hold rating to the stock. Based on data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and an average target price of $154.83.

Institutional Trading of Genuine Parts

Institutional investors and hedge funds have recently made changes to their positions in the company. Freestone Grove Partners LP purchased a new position in Genuine Parts during the fourth quarter worth about $11,341,000. Nexpoint Asset Management L.P. bought a new position in shares of Genuine Parts during the 4th quarter worth approximately $2,183,000. AQR Capital Management LLC boosted its stake in shares of Genuine Parts by 15.6% in the 4th quarter. AQR Capital Management LLC now owns 410,610 shares of the specialty retailer’s stock worth $50,489,000 after buying an additional 55,424 shares during the last quarter. Jain Global LLC bought a new position in shares of Genuine Parts in the fourth quarter valued at approximately $53,782,000. Finally, Laird Norton Wetherby Trust Company LLC purchased a new stake in shares of Genuine Parts during the fourth quarter valued at approximately $315,000. Hedge funds and other institutional investors own 78.83% of the company’s stock.

Genuine Parts Stock Down 14.4%

The stock has a 50-day moving average of $133.73 and a 200 day moving average of $133.64. The company has a quick ratio of 0.51, a current ratio of 1.14 and a debt-to-equity ratio of 0.78. The company has a market capitalization of $17.52 billion, a PE ratio of 21.68 and a beta of 0.74.

Genuine Parts Company Profile

Genuine Parts Company (NYSE: GPC) is a global distributor of automotive replacement parts, industrial parts and business products with a history dating back to 1928. Headquartered in Atlanta, Georgia, the company operates a broad distribution network and retail presence serving repair shops, independent retailers, industrial customers and commercial accounts. Its business model centers on stocking and delivering a wide range of parts and supplies to support aftermarket and maintenance needs across multiple end markets.

Genuine Parts conducts its operations through several well-known operating groups and subsidiaries.