Genuine Parts Cuts FY24 Outlook Below Market After Q3 Ad. EPS Miss Street; Stock Down In Pre-market

Genuine Parts

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(RTTNews) - Shares of Genuine Parts Co. (GPC) were losing around 10 percent in pre-market activity on the NYSE after the company lowered its fiscal 2024 outlook after reporting weak third-quarter earnings, below market, despite revenue growth.

Will Stengel, President and Chief Executive Officer, said, "Our results were below our expectations, primarily driven by continued weakness in market conditions in Europe and our Industrial business. While the external environment remains challenging for the balance of 2024, we expect the combination of near-term actions and long-term investments to better position us when market conditions improve."

For fiscal 2024, the company now projects earnings per share of $6.60 to $6.80, lower than previous estimate of $8.55 to $8.75.

Adjusted earnings per share are now projected to be $8.00 to $8.20, down from previous view of $9.30 to $9.50.

Analysts on average expect the company to report earnings of $9.36 per share, according to figures compiled by Thomson Reuters. Analysts' estimates typically exclude special items.

Total sales growth for the year is now projected at 1 percent to 2 percent, while previous outlook was a growth of 1 percent to 3 percent.

Automotive sales growth outlook lifted to 3 percent to 4 percent from previous view of 1 percent to 3 percent, while Industrial sales growth view lowered to down 2 percent to down 1 percent, compared to previous outlook of flat to up 2 percent.

The company noted that for outlook revision, it considered its recent business trends and financial results, current growth plans, strategic initiatives, global economic outlook, geopolitical conflicts and the potential impact on results.

In its third quarter, Genuine Parts revealed a profit for third quarter that decreased from the same period last year and missed the Street estimates.

The company's earnings came in at $226.58 million, or $1.62 per share. This compares with $351.20 million, or $2.49 per share, in last year's third quarter.

Adjusted earnings were $263.01 million or $1.88 per share for the period. Analysts had expected the company to earn $2.42 per share.

The company's revenue for the quarter rose 2.5 percent to $5.970 billion from $5.824 billion last year.

In pre-market activity on the NYSE, Genuine Parts shares were losing around 9.5 percent to trade at $129.48.

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