Genuine Parts Co. (GPC) stock fell in Tuesday's premarket trading after the company reported mixed third-quarter results and lowered its full-year earnings outlook.

The automotive and industrial parts distributor reported adjusted earnings of $2.07 per share, beating the analyst estimate of $2.05. However, revenue of $6.521 billion narrowly missed expectations of $6.523 billion.

The company also cut its 2026 GAAP earnings forecast to $5.60 to $5.85 per share from $5.90 to $6.40. The revised outlook fell below the analyst estimate of $6.78.

Meanwhile, Genuine Parts narrowed its adjusted earnings forecast to $7.50 to $7.75 per share from $7.50 to $8. The consensus estimate stands at $7.79.

Third-Quarter Sales Rise, Industrial Business Leads

Revenue increased 4.2% year over year, supported by 2.9% comparable sales growth and a 0.9% contribution from acquisitions.

Net income slipped to $224 million from $226 million a year earlier. Diluted earnings remained unchanged at $1.62 per share.

Adjusted net income rose to $286 million, or $2.07 per share, from $276 million, or $1.98 per share, last year.

The results excluded $61 million in after-tax restructuring and separation expenses.

Industrial sales climbed 6.1% to $2.4 billion, while segment EBITDA increased 11.2% to $317 million. The segment's EBITDA margin expanded 60 basis points to 13.2%.

North America Automotive sales grew 2.2% to $2.5 billion. However, segment EBITDA fell 2.9% to $194 million, and margins contracted 40 basis points to 7.6%.

International Automotive sales increased 4.5% to $1.6 billion, while EBITDA rose 4.7% to $141 million. Margins remained flat at 9%.

Genuine Parts Maintains Sales And Cash Flow Outlook

Despite lowering its earnings forecast, Genuine Parts maintained its full-year sales growth outlook of 3% to 5.5%.

The company also reaffirmed its operating cash flow forecast of $1 billion to $1.2 billion and free cash flow outlook of $550 million to $700 million.

For the first nine months, Genuine Parts generated $817 million in operating cash flow and $502 million in free cash flow. It also paid $434 million in dividends.

As of Sept. 30, the company had $2.4 billion in total liquidity, including $763 million in cash.

Business Separation Remains On Track

Genuine Parts continues to advance its plan to separate its Automotive and Industrial businesses into two publicly traded companies.

Chairman and CEO Will Stengel said the company achieved key milestones during the quarter and remains on schedule to establish Genuine Parts and Motion as independent businesses in the first quarter of 2027.

The company said its updated earnings outlook reflects restructuring costs, separation expenses, business trends and broader economic uncertainty.

GPC Stock Price Activity: Genuine Parts shares fell 6.28% to $122.00 in Tuesday's premarket trading, according to market data.