ATLANTA - Genuine Parts Company (NYSE:GPC), a leading distributor of automotive and industrial replacement parts, reported a slight earnings beat in the first quarter, with adjusted EPS coming in at $2.22, surpassing the analyst estimate of $2.17.
However, the company's revenue for the quarter was $5.8 billion, falling short of the consensus estimate of $5.84 billion, marking a marginal 0.3% increase from the $5.8 billion reported in the same quarter last year.
The company's stock price edged up by 0.97% following the announcement, indicating a cautiously positive investor reaction to the earnings beat and updated guidance. Genuine Parts also updated its full-year 2024 EPS guidance to a range of $9.80 to $9.95, slightly ahead of the analyst consensus of $9.78, reaffirming its total sales growth projection of 3% to 5%.
Chairman and Chief Executive Officer Paul Donahue commented on the results, stating, "Our performance in the quarter highlights the value of our business mix paired with our geographic diversity as our teams delivered profits that were ahead of our expectations." He attributed the company's success to strategic initiatives aimed at improving the business and driving profitable growth.
In the first quarter, the Automotive Parts Group saw a 1.9% increase in sales to $3.6 billion, while the Industrial Parts Group experienced a 2.2% decline to $2.2 billion. Despite the mixed sales performance, both segments reported increases in profit margins, with Automotive profit up 3.2% and Industrial profit up 3.4% compared to the same period last year.
The company's balance sheet remains robust, with $2.5 billion in total liquidity at the end of the quarter. Cash flow from operations was $318 million, and free cash flow stood at $203 million for the first three months of 2024.
Looking ahead, Genuine Parts is focused on maintaining operating discipline and improving earnings amidst low sales growth. President and Chief Operating Officer Will Stengel expressed satisfaction with the company's start to the year and its reaffirmed sales growth and improved earnings outlook for 2024.
The company's updated guidance reflects its recent business trends, financial results, growth plans, and strategic initiatives, as well as the current global economic outlook and potential geopolitical impacts.
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