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Genuine Parts (GPC) Q1 Earnings Beat, Sales Miss Estimates
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Genuine Parts Company (GPC - Free Report) delivered first-quarter 2024 adjusted earnings of $2.22 per share, up 3.74% year over year. The bottom line surpassed the Zacks Consensus Estimate of $2.15 per share. The company reported net sales of $5.78 billion, lagging the Zacks Consensus Estimate of $5.84 billion and inching up 0.32% year over year. This nominal increase was due to a 1.9% boost from acquisitions, offset by a 0.9% drop in comparable sales and a 0.7% impact from unfavorable foreign currency transactions.
Genuine Parts Company Price, Consensus and EPS Surprise
The Automotive segment’s net sales totaled $3.6 billion in the reported quarter, up 1.9% year over year on comparable sales growth and acquisition benefits. The top line also surpassed our estimate of $3.53 billion. The segment’s comparable sales inched up 0.2% year over year. Operating profit increased 3.2% to $273 million but missed our forecast of $294.6 million. Segment profit margin came in at 7.6%, up 10 basis points from the year-ago period.
The Industrial Parts segment’s net sales declined 2.2% year over year to $2.2 billion owing to a decline in comps and unfavorable forex translations. The top line also lagged our estimate of $2.3 billion. The segment’s comparable sales decreased 2.6% in the reported quarter. Operating profit rose 3.4% from the prior-year quarter to $271 million but fell short of our projection of $288 million. The profit margin of 12.3% expanded 70 basis points year over year in the first quarter of 2024.
Financial Performance
Genuine Parts had cash and cash equivalents worth $1.05 billion as of Mar 31, 2024, down from $1.1 billion as of Dec 31, 2023. Long-term debt decreased to $3.03 billion from $3.55 billion as of Dec 31, 2023. The company exited the first quarter with $2.5 billion in total liquidity, comprising $1.5 billion on the revolving credit facility and the remainder as cash/cash equivalents. The company generated free cash flow (FCF) of $203 million in the quarter under review.
2024 Guidance
For 2024, Genuine Parts expects revenues from automotive and industrial sales to witness year-over-year upticks of 2-4% and 3-5%, respectively. Overall sales growth is projected to be in the range of 3-5%. The company envisions adjusted earnings of $9.80-$9.95 per share. Operating cash flow is expected to be in the band of $1.3-$1.5 billion. FCF is guided to be between $800 million and $1 billion.
Zacks Rank & Key Picks
Genuine Parts currently carries a Zacks Rank #3 (Hold).
The Zacks Consensus Estimate for GM’s 2024 sales and earnings suggests year-over-year growth of 0.8% and 18.7%, respectively. The EPS estimates for 2024 and 2025 have improved by 4 cents and 3 cents, respectively, in the past seven days.
The Zacks Consensus Estimate for PCAR’s 2024 and 2025 EPS has moved up by 5 cents and 4 cents, respectively, in the past seven days. The trucking giant surpassed earnings estimates in the trailing four quarters, with the average surprise being 17.07%.
The Zacks Consensus Estimate for F’s 2024 and 2025 EPS has moved up by 2 cents each in the past seven days. The auto giant surpassed earnings estimates in three out of the trailing four quarters and missed in the remaining one, with the average surprise being 59.4%.
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Genuine Parts (GPC) Q1 Earnings Beat, Sales Miss Estimates
Genuine Parts Company (GPC - Free Report) delivered first-quarter 2024 adjusted earnings of $2.22 per share, up 3.74% year over year. The bottom line surpassed the Zacks Consensus Estimate of $2.15 per share. The company reported net sales of $5.78 billion, lagging the Zacks Consensus Estimate of $5.84 billion and inching up 0.32% year over year. This nominal increase was due to a 1.9% boost from acquisitions, offset by a 0.9% drop in comparable sales and a 0.7% impact from unfavorable foreign currency transactions.
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 totaled $3.6 billion in the reported quarter, up 1.9% year over year on comparable sales growth and acquisition benefits. The top line also surpassed our estimate of $3.53 billion. The segment’s comparable sales inched up 0.2% year over year. Operating profit increased 3.2% to $273 million but missed our forecast of $294.6 million. Segment profit margin came in at 7.6%, up 10 basis points from the year-ago period.
The Industrial Parts segment’s net sales declined 2.2% year over year to $2.2 billion owing to a decline in comps and unfavorable forex translations. The top line also lagged our estimate of $2.3 billion. The segment’s comparable sales decreased 2.6% in the reported quarter. Operating profit rose 3.4% from the prior-year quarter to $271 million but fell short of our projection of $288 million. The profit margin of 12.3% expanded 70 basis points year over year in the first quarter of 2024.
Financial Performance
Genuine Parts had cash and cash equivalents worth $1.05 billion as of Mar 31, 2024, down from $1.1 billion as of Dec 31, 2023. Long-term debt decreased to $3.03 billion from $3.55 billion as of Dec 31, 2023. The company exited the first quarter with $2.5 billion in total liquidity, comprising $1.5 billion on the revolving credit facility and the remainder as cash/cash equivalents. The company generated free cash flow (FCF) of $203 million in the quarter under review.
2024 Guidance
For 2024, Genuine Parts expects revenues from automotive and industrial sales to witness year-over-year upticks of 2-4% and 3-5%, respectively. Overall sales growth is projected to be in the range of 3-5%. The company envisions adjusted earnings of $9.80-$9.95 per share. Operating cash flow is expected to be in the band of $1.3-$1.5 billion. FCF is guided to be between $800 million and $1 billion.
Zacks Rank & Key Picks
Genuine Parts currently carries a Zacks Rank #3 (Hold).
If you wish to invest in the auto space, consider adding stocks like General Motors (GM - Free Report) , PACCAR (PCAR - Free Report) and Ford (F - Free Report) to your portfolio. Each of these companies currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for GM’s 2024 sales and earnings suggests year-over-year growth of 0.8% and 18.7%, respectively. The EPS estimates for 2024 and 2025 have improved by 4 cents and 3 cents, respectively, in the past seven days.
The Zacks Consensus Estimate for PCAR’s 2024 and 2025 EPS has moved up by 5 cents and 4 cents, respectively, in the past seven days. The trucking giant surpassed earnings estimates in the trailing four quarters, with the average surprise being 17.07%.
The Zacks Consensus Estimate for F’s 2024 and 2025 EPS has moved up by 2 cents each in the past seven days. The auto giant surpassed earnings estimates in three out of the trailing four quarters and missed in the remaining one, with the average surprise being 59.4%.