Genuine Parts (NYSE:GPC) Shares Gap Down Following Weak Earnings

Genuine Parts Company (NYSE:GPC) gapped down prior to trading 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 changing hands.

The specialty retailer reported $1.55 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.79 by ($0.24). Genuine Parts had a return on equity of 22.28% and a net margin of 0.27%.The firm had revenue of $6.01 billion for the quarter, compared to analyst estimates of $6.06 billion. During the same period in the prior year, the company posted $1.61 EPS. The firm’s quarterly revenue was up 4.1% compared to the same quarter last year. Genuine Parts has set its FY 2026 guidance at 7.500-8.000 EPS.

Genuine Parts Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, April 2nd. Stockholders of record on Friday, March 6th will be given a dividend of $1.0625 per share. The ex-dividend date is Friday, March 6th. This represents a $4.25 annualized dividend and a dividend yield of 3.5%. This is a positive change from Genuine Parts’s previous quarterly dividend of $1.03. Genuine Parts’s dividend payout ratio is presently 70.91%.

More Genuine Parts News

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

• Positive Sentiment: Board raised the quarterly dividend (3.2% increase), continuing a multi‑decade payout streak — supports income investors and cushions downside. Genuine Parts Company Reports Fourth Quarter and Full-Year 2025 Results
• Positive Sentiment: Analyst/market commentary views the planned spin‑off as a value-unlocking move: separating Global Industrial (Motion) from Global Automotive (NAPA) could allow the higher‑multiple industrial business to re-rate independently. The Hidden Value in Genuine Parts Company’s Spin-Off Plan
• Positive Sentiment: Operational improvement potential: NAPA announced a partnership to deploy Brightpick warehouse automation, which could lower distribution costs and improve margins over time. Brightpick Enters Automotive Market in Strategic Partnership with NAPA
• Neutral Sentiment: Company formally announced intent to separate Automotive and Industrial into two public companies (tax‑free separation targeted Q1 2027); timing and execution risk remain. Genuine Parts Company Announces Plan to Separate Automotive and Industrial Businesses Into Two Industry-Leading Public Companies
• Neutral Sentiment: Earnings call/transcript and slide deck available — useful for detail on charges, guidance and separation cadence if you want to dig into management’s rationale. Genuine Parts: Bumpy Q4 In Automotive
• Negative Sentiment: Q4 results missed expectations: adjusted EPS $1.55 vs. $1.79 consensus and revenue slipped slightly below estimates — a primary driver of the selloff. Management cut FY‑2026 adjusted EPS guidance to $7.50–$8.00 (below the prior consensus ~$8.41). Genuine Parts (GPC) Lags Q4 Earnings and Revenue Estimates
• Negative Sentiment: Large GAAP net loss driven by one‑time charges (notably a pension settlement and uncollectible supplier rebates tied to a vendor bankruptcy) created a “kitchen‑sink” quarter that spooked investors. The Hidden Value in Genuine Parts Company’s Spin-Off Plan
• Negative Sentiment: Shares fell on the combination of the earnings miss, charges and guidance reset; near‑term volatility is likely as the market digests separation details. Genuine Parts to carve out industrial business; shares fall

Wall Street Analysts Forecast Growth

A number of research analysts have recently weighed in on GPC shares. Weiss Ratings reissued a “hold (c-)” rating on shares of Genuine Parts in a research note on Monday, December 29th. JPMorgan Chase & Co. increased their target price on Genuine Parts from $145.00 to $150.00 and gave the company an “overweight” rating in a research note on Thursday, October 23rd. The Goldman Sachs Group upgraded Genuine Parts from a “sell” rating to a “neutral” rating and boosted their target price for the stock from $130.00 to $142.00 in a research report on Thursday, November 13th. Truist Financial set a $127.00 price target on Genuine Parts and gave the company a “hold” rating in a research note on Wednesday. Finally, Evercore set a $175.00 price objective on shares of Genuine Parts in a research note on Wednesday, February 11th. One equities research analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating and four have assigned a Hold rating to the stock. Based on data from MarketBeat, Genuine Parts currently has an average rating of “Moderate Buy” and an average target price of $148.17.

Institutional Investors Weigh In On Genuine Parts

Institutional investors have recently added to or reduced their stakes in the stock. Olistico Wealth LLC bought a new stake in shares of Genuine Parts in the fourth quarter valued at about $25,000. Strive Financial Group LLC bought a new position in shares of Genuine Parts during the fourth quarter worth about $25,000. Community Bank N.A. acquired a new stake in Genuine Parts in the 3rd quarter valued at approximately $27,000. Peoples Financial Services CORP. bought a new stake in Genuine Parts in the 3rd quarter valued at approximately $29,000. Finally, WPG Advisers LLC boosted its position in Genuine Parts by 213.0% during the 4th quarter. WPG Advisers LLC now owns 241 shares of the specialty retailer’s stock worth $30,000 after acquiring an additional 164 shares during the last quarter. 78.83% of the stock is owned by institutional investors.

Genuine Parts Trading Down 3.7%

The stock has a market cap of $16.85 billion, a price-to-earnings ratio of 263.26 and a beta of 0.74. The business has a 50-day simple moving average of $133.53 and a two-hundred day simple moving average of $133.55. The company has a debt-to-equity ratio of 0.79, a quick ratio of 0.51 and a current ratio of 1.08.

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.