Atlanta, Georgia-based Genuine Parts Company (GPC) is a leading global service provider of automotive & industrial replacement parts and value-added solutions. With a market cap of $16.5 billion, Genuine Parts operates over 10,700 locations spread across 17 countries and employs over 60,000 people across the globe. GPC is expected to release its fourth-quarter results on Thursday, Feb. 20.

Ahead of the event, analysts expect GPC to report a non-GAAP profit of $1.54 per share, down 31.9% from $2.26 per share reported in the year-ago quarter. While the company has missed Wall Street’s earnings projections twice over the past four quarters, it has surpassed the estimates on two other occasions. Its adjusted EPS for the last reported quarter declined 24.5% year-over-year to $1.88, missing analysts’ expectations by nearly 23%.

For the full fiscal 2024, GPC is expected to deliver an adjusted EPS of $8.09, down 13.3% from $9.33 in fiscal 2023. While in fiscal 2025, its earnings are expected to increase by a modest 2.6% year-over-year to $8.30 per share.

Genuine Parts stock has plunged 15.5% over the past 52 weeks, substantially lagging behind the S&P 500 Index’s ($SPX) 25% surge and the Consumer Discretionary Select Sector SPDR Fund’s (XLY) 32% returns during the same time frame.

Genuine Parts’ stock prices plummeted nearly 21% after the release of its disappointing Q3 results on Oct. 22. The company reported a modest 2.5% year-over-year growth in net sales to nearly $6 billion, which missed Wall Street’s expectations. Meanwhile, it observed a steep 11% increase in selling, general, and admin expenses to $1.7 billion, along with a restructuring cost of $41 million, which led to a staggering 30.8% year-over-year drop in operating income to $321.9 million.

Furthermore, due to the declining profits and expected softness in industrial sales growth, Genuine Parts lowered its full-year revenue growth guidance and earnings projections, unsettling investor confidence.

Yet analysts remain moderately bullish on the stock’s prospects. GPC has a consensus “Moderate Buy” rating overall. Among the 11 analysts covering the stock, three recommend “Strong Buy” and eight suggest a “Hold” rating. Its mean price target of $134.70 represents a 12.2% upside potential from current price levels.