Back to top

Image: Bigstock

Genuine Parts (GPC) Beats on Q3 Earnings & Sales, Ups '21 View

Read MoreHide Full Article

Genuine Parts Company (GPC - Free Report) reported third-quarter 2021 adjusted earnings of $1.88 per share, up 15% year over year. The bottom line also surpassed the Zacks Consensus Estimate of $1.64 per share. Higher-than-expected revenues and profits across both Automotive and Industrial Parts segments resulted in this outperformance.

This Atlanta-based automotive replacement parts supplier reported net sales of $4,818.8 million, topping the Zacks Consensus Estimate of $4,697 million. The top-line figure is also higher than the year-ago quarter’s $4,370 million. The upside resulted from 7.6% growth in comparable sales, 0.9% forex gains and a 1.8% benefit from acquisitions.

Genuine Parts Company Price, Consensus and EPS Surprise

Genuine Parts Company Price, Consensus and EPS Surprise

Genuine Parts Company price-consensus-eps-surprise-chart | Genuine Parts Company Quote

Segmental Performance

The Automotive segment’s net sales — accounting for 66% of the firm’s total revenues — totaled $3,204.5 million for the reported quarter, up 8.2% year over year on the back of comps growth, favorable forex translations and acquisition benefits. The metric also surpassed the Zacks Consensus Estimate of $3,132 million. The segment’s comparable sales rose 4.8% year over year for the third quarter. The operating profit increased 5.6% year over year to $281.2 million and topped the consensus mark of $263 million as well.

The Industrial Parts segment’s net sales grew 14.5% from the year-ago quarter to $1,614.3 million on comps growth, forex gains and buyout synergies. Revenues from the segment also beat the consensus estimate of $1,578 million. The segment’s comparable sales climbed 13.4% during the reported quarter. The operating profit jumped 31.9% from the prior-year quarter to $165.8 million and surpassed the consensus mark of $134 million.

Financial Tidbits

Genuine Parts — which shares space with LKQ Corporation (LKQ - Free Report) , Dorman Products (DORM - Free Report) and SPX Corporation (SPXC - Free Report) in the same industry — had cash and cash equivalents worth $919.1 million as of Sep 30, 2021. The long-term debt decreased to $2,432.5 million from the $2,700.6 million recorded in the year-ago period. Free cash flow for the reported quarter totaled $255.6 million.

Guidance Raised

Genuine Parts — which presently carries a Zacks Rank #2 (Buy) — raised the 2021 guidance. The company now projects revenues from the automotive and industrial sales to witness a year-over-year uptick of 14-15% and 10-11%, up from the prior guided range of 11-13% and 6-8%, respectively. The full-year adjusted earnings per share are envisioned in the band of $6.60-$6.65, higher than the prior forecast of $6.20-$6.35. The operating cash flow forecast remains unchanged in the range of $1.2-$1.4 billion. Free cash flow is now projected in the band of $950 million to $1.15 billion, up from the previous forecast of $900 million to $1.1 billion. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Published in