Stock Track | Genuine Parts Soars 5% as Q2 Earnings Beat Estimates, Despite Lowered Guidance

Stock Track
07/22

Genuine Parts Company (GPC) saw its stock price surge 5% in Tuesday's intraday trading session following the release of its second-quarter earnings report. The automotive parts distributor managed to surpass analyst expectations, despite lowering its full-year guidance due to economic uncertainties.

The company reported adjusted earnings per share of $2.10 for the second quarter, beating the analyst consensus estimate of $2.07. Revenue also came in strong at $6.164 billion, exceeding the expected $6.103 billion. This represents a 3.37% increase compared to the same period last year, showcasing the company's resilience in a challenging economic environment.

However, Genuine Parts revised its full-year 2025 outlook, citing the impact of current U.S. tariffs and an evolving market landscape. The company now expects adjusted earnings of $7.50 to $8.00 per diluted share, down from the previous forecast of $7.75 to $8.25. Additionally, sales growth projections for the year have been moderated to 1-3%, compared to the earlier estimate of 2-4%.

Despite the tempered outlook, investors appear to be focusing on the company's ability to exceed quarterly expectations and maintain growth. The stock's positive reaction suggests that the market views Genuine Parts as well-positioned to navigate the uncertain economic conditions ahead.

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