Genuine Parts Company (NYSE: GPC) experienced a significant pre-market plunge of 8.26% on Tuesday. The sharp decline followed the release of the company's fourth-quarter and full-year 2025 financial results.
The stock's downward movement is attributed to disappointing quarterly earnings that fell short of analyst expectations. Genuine Parts reported adjusted earnings per share of $1.55 for Q4 2025, missing the IBES estimate of $1.82. Quarterly sales of $6,009.415 million also came in below the estimated $6,063 million. Furthermore, the company reported a substantial net loss of $609.498 million and an EPS of -$4.39 for the quarter, with gross profit impacted by $160 million in certain non-recurring charges.
Adding to investor concerns, the company simultaneously announced plans to separate its automotive and industrial businesses into two independent, publicly traded companies. The tax-free separation is expected to be completed in the first quarter of 2027, creating uncertainty about the future structure and performance of the divided entities.