As the Q3 earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers in the auto parts retailer industry, including Genuine Parts (NYSE:GPC) and its peers.
Cars are complex machines that need maintenance and occasional repairs, and auto parts retailers cater to the professional mechanic as well as the do-it-yourself (DIY) fixer. Work on cars may entail replacing fluids, parts, or accessories, and these stores have the parts and accessories or these jobs. While e-commerce competition presents a risk, these stores have a leg up due to the combination of broad and deep selection as well as expertise provided by sales associates. Another change on the horizon could be the increasing penetration of electric vehicles.
The 5 auto parts retailer stocks we track reported a softer Q3. As a group, revenues were in line with analysts’ consensus estimates.
While some auto parts retailer stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 2.3% since the latest earnings results.
Genuine Parts (NYSE:GPC)
Largely targeting the professional customer, Genuine Parts (NYSE:GPC) sells auto and industrial parts such as batteries, belts, bearings, and machine fluids.
Genuine Parts reported revenues of $5.97 billion, up 2.5% year on year. This print was in line with analysts’ expectations, but overall, it was a softer quarter for the company with full-year EPS guidance missing analysts’ expectations significantly.
Unsurprisingly, the stock is down 14.1% since reporting and currently trades at $122.99.
Serving both the DIY customer and professional mechanic, O’Reilly Automotive (NASDAQ:ORLY) is an auto parts and accessories retailer that sells everything from fuel pumps to car air fresheners to mufflers.
O'Reilly reported revenues of $4.36 billion, up 3.8% year on year, falling short of analysts’ expectations by 1.3%. The business performed better than its peers, but it was unfortunately a mixed quarter with an impressive beat of analysts’ EBITDA estimates but full-year EPS guidance slightly missing analysts’ expectations.
O'Reilly scored the highest full-year guidance raise among its peers. The market seems content with the results as the stock is up 1.3% since reporting. It currently trades at $1,215.
Started as a single location in Rochester, New York, Monro (NASDAQ:MNRO) provides common auto services such as brake repairs, tire replacements, and oil changes.
Monro reported revenues of $301.4 million, down 6.4% year on year, in line with analysts’ expectations. It was a disappointing quarter as it posted a significant miss of analysts’ EBITDA estimates.
Monro delivered the biggest analyst estimates beat but had the slowest revenue growth in the group. Interestingly, the stock is up 6.3% since the results and currently trades at $28.47.
Founded in Virginia in 1932, Advance Auto Parts (NYSE:AAP) is an auto parts and accessories retailer that sells everything from carburetors to motor oil to car floor mats.
Advance Auto Parts reported revenues of $2.15 billion, down 3.2% year on year. This print missed analysts’ expectations by 1.1%. It was a disappointing quarter as it also recorded full-year revenue guidance missing analysts’ expectations.
Advance Auto Parts had the weakest full-year guidance update among its peers. The stock is down 5.9% since reporting and currently trades at $38.50.
Aiming to be a one-stop shop for the DIY customer, AutoZone (NYSE:AZO) is an auto parts and accessories retailer that sells everything from car batteries to windshield wiper fluid to brake pads.
AutoZone reported revenues of $6.21 billion, up 9% year on year. This result met analysts’ expectations. Taking a step back, it was a slower quarter as it produced a miss of analysts’ EBITDA and EPS estimates.
AutoZone delivered the fastest revenue growth among its peers. The stock is flat since reporting and currently trades at $3,072.
Thanks to the Fed’s rate hikes in 2022 and 2023, inflation has been on a steady path downward, easing back toward that 2% sweet spot. Fortunately (miraculously to some), all this tightening didn’t send the economy tumbling into a recession, so here we are, cautiously celebrating a soft landing. The cherry on top? Recent rate cuts (half a point in September, a quarter in November) have kept 2024 stock markets frothy, especially after Trump’s November win lit a fire under major indices and sent them to all-time highs. However, there's still plenty to ponder — tariffs, corporate tax cuts, and what 2025 might hold for the economy.
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