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Genuine Parts (GPC) Partners Google Cloud to Revamp Platform

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Genuine Parts Company (GPC - Free Report) chose Google Cloud as a strategic partner to draw on the latter’s spectrum of services. Google Cloud’s trailblazing data and analytics platforms will modernize Genuine Parts’ supply chain and improve customer experience. With a multitude of services provided by Google Cloud, Genuine Parts plans to optimize its tech infrastructure to support more than 10,000 stores and fulfillment centers across the globe.

"As we invest in technology to modernize our business capabilities and strengthen the foundations for operational excellence and profitable growth, we couldn't be more pleased than to partner with Google Cloud," said Naveen Krishna, executive VP, GPC.

The company also hosted its 2023 Investor Day recently and reaffirmed its outlook for the current year along with providing an update on its long-term target and growth initiatives.

For FY2023, the auto replacement part distributor expects its automotive sales growth, industrial sales growth and total sales growth each within the range of 4%-6%. Adjusted diluted earnings per share and diluted earnings per share are both expected to range between $8.85 and $8.95. The guidance for operating cash flow and free cash flow is expected within $1.2-$1.4 billion and $800-$1,000 million, respectively.

The company also shed light on its 2025 outlook. Genuine Parts expects its total sales and EBITDA to range within $26.5 billion-$27 billion and $2.65 billion-$2.75 billion, respectively. Earnings per share are expected to fall within the range of $11.00-$11.50.

During the span of three years (2023-2025), the company projects its sales to grow at a compounded annual growth rate (CAGR) of 6%-7%. Earnings per share are likely to increase at a CAGR of 10%-11%. Cumulative free cash flow for the three years is expected within the range of $2.6 billion-$2.8 billion.

Zacks Rank & Key Picks

GPC currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

A few top-ranked players in the auto space are Mercedes-Benz Group AG (MBGAF - Free Report) , Modine Manufacturing (MOD - Free Report) and Wabash National (WNC - Free Report) , all of which sport a Zacks Rank #1.

Mercedes-Benz develops, manufactures and sells passenger cars, including premium and luxury vehicles. The Zacks Consensus Estimate for MBGAF’s 2023 sales imply year-over-year growth of 4.02%.

Modine operates primarily in a single industry consisting of the manufacture and sale of heat transfer equipment. The Zacks Consensus Estimate for MOD’s 2023 sales and earnings imply year-over-year growth of 11.43% and 43.09%, respectively.

Wabash is one of the leading manufacturers of semi-trailers in North America. The Zacks Consensus Estimate for WNC’s 2023 sales and earnings imply year-over-year growth of 13.06% and 28.89%, respectively.


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