Research Alert: Gpc: A Slight Beat & Guidance Unchanged; Company Split On Track For Q1 2027
CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:Genuine Parts Company (GPC) posted Q1 adjusted EPS of $1.77 vs. $1.75 (+1%), two cents ahead of consensus. Net sales rose 6.8% to $6.26B ($100M ahead of consensus), and gross margin expanded 20 bps to 37.3% (in line). Net sales growth was led by the International Automotive (+13.2%) segment (mainly due to foreign exchange), while the Industrial (+5.2%) and North American Automotive segments (+4.3%) experienced weaker growth. GPC maintained full-year adjusted EPS guidance of $7.50-$8.00, which compares to the current consensus of $7.72. Management reaffirmed the Q1 2027 timeline for completing the split of its Global Automotive and Global Industrial segments into two independent public companies. GPC shares are trading 3% lower in pre-market trading, as the magnitude of the beat and unchanged guidance is doing little to inspire investors after a sharp sell-off since its last earnings release on February 17. In our view, the stock lacks a near-term catalyst absent the expected company split in early 2027.