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Genuine Parts (GPC) Q4 Earnings & Sales Top Estimates, Up Y/Y
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Genuine Parts Company (GPC - Free Report) reported fourth-quarter 2021 adjusted earnings of $1.79 per share, up 17.8% year over year. The bottom line also surpassed the Zacks Consensus Estimate of $1.61 per share. Robust sales growth coupled with ongoing gross-margin improvement initiatives and expenses control actions in response to inflationary cost pressure lead to this outperformance.
The company reported net sales of $4,803 million, surpassing the Zacks Consensus Estimate of $4,675 million. The top line is also higher than the year-ago quarter’s $4,252 million. The upside resulted from 11.3% growth in comparable sales and a 1.9% benefit from acquisitions, partly offset by an unfavorable impact of foreign currency translation.
Genuine Parts Company Price, Consensus and EPS Surprise
The Automotive segment’s net totaled $3,190 million in the reported quarter, up 13.1% year over year on the back of comparable sales growth and acquisition benefits. The segment’s comparable sales rose 10.6% year over year for the fourth quarter. The operating profit increased 10.7% year over year to $266 million.
The Industrial Parts segment’s net sales rose 12.8% from the year-ago quarter’s levels to $1,613 million on comparable sales growth and a favorable impact from foreign currency translation. The segment’s comparable sales climbed 12.5% during the reported quarter. The operating profit climbed 15.3% from the prior-year quarter to $154 million.
Financial Performance
Genuine Parts had cash and cash equivalents worth $715 million at the end of 2021 compared with $990 million at 2020-end. The long-term debt declined to $2,409 million in 2021 from the $2,517 million recorded in 2020. The company generated a free cash flow of $992 million in 2021.
2022 Guidance
Genuine Parts projects revenues from the automotive and industrial sales to witness a year-over-year uptick of 4-6% and 20-22%. Overall sales growth is projected in the range of 9% to 11%. The full-year adjusted earnings per share are envisioned in the band of $7.45-$7.60. The operating cash flow is expected between $1.5 billion and $1.7 billion. Free cash flow is projected in the band of $1.2 billion to $1.4 billion.
Zacks Rank & Stocks to Consider
Genuine Parts currently carries a Zacks Rank #3 (Hold).
Tesla has an expected earnings growth rate of 40.7% for the current year. The Zacks Consensus Estimate for current-year earnings has been revised around 22% upward in the past 30 days.
Tesla’s earnings beat the Zacks Consensus Estimate in all of the trailing four quarters. TSLA pulled off a trailing four-quarter earnings surprise of 33.6%, on average. The stock has also rallied 17.3% over a year.
Dorman has an expected earnings growth rate of 15.9% for the current year. The Zacks Consensus Estimate for current-year earnings has been revised around 0.2% upward in the past 30 days.
Dorman’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and met the consensus mark in one. DORM pulled off a trailing four-quarter earnings surprise of 10.41%, on average.
Allison has an expected earnings growth rate of 19.1% for the current year. The Zacks Consensus Estimate for earnings for the current year have been stable in the past 30 days.
Allison’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and met the consensus mark in one. ALSN pulled off a trailing four-quarter earnings surprise of around 13.4%, on average. The stock has also rallied 7% over a year.
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Genuine Parts (GPC) Q4 Earnings & Sales Top Estimates, Up Y/Y
Genuine Parts Company (GPC - Free Report) reported fourth-quarter 2021 adjusted earnings of $1.79 per share, up 17.8% year over year. The bottom line also surpassed the Zacks Consensus Estimate of $1.61 per share. Robust sales growth coupled with ongoing gross-margin improvement initiatives and expenses control actions in response to inflationary cost pressure lead to this outperformance.
The company reported net sales of $4,803 million, surpassing the Zacks Consensus Estimate of $4,675 million. The top line is also higher than the year-ago quarter’s $4,252 million. The upside resulted from 11.3% growth in comparable sales and a 1.9% benefit from acquisitions, partly offset by an unfavorable impact of foreign currency translation.
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 totaled $3,190 million in the reported quarter, up 13.1% year over year on the back of comparable sales growth and acquisition benefits. The segment’s comparable sales rose 10.6% year over year for the fourth quarter. The operating profit increased 10.7% year over year to $266 million.
The Industrial Parts segment’s net sales rose 12.8% from the year-ago quarter’s levels to $1,613 million on comparable sales growth and a favorable impact from foreign currency translation. The segment’s comparable sales climbed 12.5% during the reported quarter. The operating profit climbed 15.3% from the prior-year quarter to $154 million.
Financial Performance
Genuine Parts had cash and cash equivalents worth $715 million at the end of 2021 compared with $990 million at 2020-end. The long-term debt declined to $2,409 million in 2021 from the $2,517 million recorded in 2020. The company generated a free cash flow of $992 million in 2021.
2022 Guidance
Genuine Parts projects revenues from the automotive and industrial sales to witness a year-over-year uptick of 4-6% and 20-22%. Overall sales growth is projected in the range of 9% to 11%. The full-year adjusted earnings per share are envisioned in the band of $7.45-$7.60. The operating cash flow is expected between $1.5 billion and $1.7 billion. Free cash flow is projected in the band of $1.2 billion to $1.4 billion.
Zacks Rank & Stocks to Consider
Genuine Parts currently carries a Zacks Rank #3 (Hold).
Some better-ranked players in the auto space are Tesla (TSLA - Free Report) , sporting a Zacks Rank #1(Strong Buy) and Dorman Products (DORM - Free Report) and Allison Transmission Holdings, Inc. (ALSN - Free Report) , each carrying a Zacks Rank #2 (Buy) currently. You can see the complete list of today’s Zacks #1 Rank stocks here.
Tesla has an expected earnings growth rate of 40.7% for the current year. The Zacks Consensus Estimate for current-year earnings has been revised around 22% upward in the past 30 days.
Tesla’s earnings beat the Zacks Consensus Estimate in all of the trailing four quarters. TSLA pulled off a trailing four-quarter earnings surprise of 33.6%, on average. The stock has also rallied 17.3% over a year.
Dorman has an expected earnings growth rate of 15.9% for the current year. The Zacks Consensus Estimate for current-year earnings has been revised around 0.2% upward in the past 30 days.
Dorman’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and met the consensus mark in one. DORM pulled off a trailing four-quarter earnings surprise of 10.41%, on average.
Allison has an expected earnings growth rate of 19.1% for the current year. The Zacks Consensus Estimate for earnings for the current year have been stable in the past 30 days.
Allison’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and met the consensus mark in one. ALSN pulled off a trailing four-quarter earnings surprise of around 13.4%, on average. The stock has also rallied 7% over a year.