Georgia-based Genuine Parts Company (GPC), with a market cap of $18.7 billion, distributes automotive and industrial replacement parts and materials in over 10,700 locations spanning 17 countries. The company is expected to announce its fiscal Q2 earnings results on Thursday, July 18.

Ahead of the event, analysts expect GPC to report a profit of $2.61 per share, up 7% from $2.44 per share in the year-ago quarter. The company has surpassed Wall Street's bottom-line estimates in each of the past four quarters. 

The company’s near-term and long-term strategic initiatives helped it report an adjusted EPS of $2.22 in the most recent quarter, which rose 3.7% year over year and beat the consensus estimate by 3.3%.

For fiscal 2024, analysts expect Genuine Parts to report EPS of $9.92, up 6.3% from $9.33 in fiscal 2023. For fiscal year 2025, the company’s EPS is projected to rise 9.3% annually to $10.84.

GPC stock plunged 19.8% over the past 52 weeks, significantly underperforming the S&P 500 Index's ($SPX) 23.1% gains and the S&P 500 Consumer Discretionary Sector SPDR’s (XLY) 9.2% returns over the same time frame.

However, GPC stock popped 11.2% following the release of its Q1 earnings on April 18. Despite missing topline estimates, the company beat the bottom-line expectations and also raised its full-year earnings, impressing investors. This upward revision was driven by improved overall earnings from operating discipline, better performance in the U.S. automotive business, solid results from other segments, and higher-than-expected profits.

Besides, the company reaped the value of its business mix and geographic diversity in fiscal Q1 and ended the quarter with $2.5 billion in total liquidity, consisting of $1.5 billion availability on the revolving credit facility and $1 billion in cash and cash equivalents.

Analysts' consensus rating on Genuine Parts stock is cautiously optimistic overall, with a "Moderate Buy" rating. Among nine analysts covering the stock, three recommend a "Strong Buy," while the remaining six suggest a "Hold."

The average analyst price target for GPC is $165.88, suggesting a potential upside of 23.9% from the current price levels.

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On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.