As the Q2 earnings season wraps, let’s dig into 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 mixed Q2. As a group, revenues beat analysts’ consensus estimates by 0.9%.
Thankfully, share prices of the companies have been resilient as they are up 5.8% on average 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 $6.16 billion, up 3.4% year on year. This print exceeded analysts’ expectations by 0.9%. Overall, it was a satisfactory quarter for the company with a solid beat of analysts’ gross margin estimates.
Interestingly, the stock is up 12.6% since reporting and currently trades at $139.50.
Is now the time to buy Genuine Parts? Access our full analysis of the earnings results here, it’s free.
Best Q2: Monro (NASDAQ: MNRO)
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 million, up 2.7% year on year, outperforming analysts’ expectations by 1.7%. The business had an exceptional quarter with a beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.
Monro achieved the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 6.8% since reporting. It currently trades at $17.44.
Is now the time to buy Monro? Access our full analysis of the earnings results here, it’s free.
Weakest Q2: Advance Auto Parts (NYSE: AAP)
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 $2.01 billion, down 7.7% year on year, exceeding analysts’ expectations by 1%. Still, it was a slower quarter as it posted full-year EPS guidance missing analysts’ expectations significantly and a significant miss of analysts’ EBITDA estimates.
Advance Auto Parts delivered the slowest revenue growth and weakest full-year guidance update in the group. As expected, the stock is down 5.4% since the results and currently trades at $58.46.
Read our full analysis of Advance Auto Parts’s results here.
O'Reilly (NASDAQ: ORLY)
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 $4.53 billion, up 5.9% year on year. This print met analysts’ expectations. Zooming out, it was a slower quarter as it recorded a miss of analysts’ EBITDA estimates and full-year EPS guidance slightly missing analysts’ expectations.
O'Reilly scored the fastest revenue growth and highest full-year guidance raise, but had the weakest performance against analyst estimates among its peers. The stock is up 7.5% since reporting and currently trades at $102.70.
Read our full, actionable report on O'Reilly here, it’s free.
AutoZone (NYSE: AZO)
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 $4.46 billion, up 5.4% year on year. This number topped analysts’ expectations by 1.1%. Taking a step back, it was a slower quarter as it logged a miss of analysts’ EBITDA estimates and a slight miss of analysts’ gross margin estimates.
The stock is up 7.3% since reporting and currently trades at $4,111.
Read our full, actionable report on AutoZone here, it’s free.
Market Update
Thanks to the Fed’s series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% in November), and a notable surge followed Donald Trump’s presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. The path forward holds both optimism and caution as new policies take shape.
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