Genuine Parts shares tumble over 9% as Q3 earnings miss estimates, guidance slashed

ATLANTA - Genuine Parts Company (NYSE:GPC ) shares plunged 9.5% in premarket trading Tuesday after the automotive and industrial parts distributor reported third quarter earnings that fell short of expectations and significantly lowered its full-year outlook.

The company posted adjusted earnings per share of $1.88 for Q3, missing the analyst consensus of $2.42 by a wide margin. Revenue came in at $6 billion, slightly above estimates of $5.95 billion and up 2.5% YoY.

Genuine Parts slashed its full-year 2024 adjusted EPS guidance to a range of $8.00-$8.20, down sharply from its previous outlook of $9.30-$9.50 and well below the $9.36 consensus. The company now expects revenue growth of just 1-2% for the year, compared to 1-3% previously.

"Our results were below our expectations, primarily driven by continued weakness in market conditions in Europe and our Industrial business," said CEO Will Stengel.

The company's Automotive segment saw sales rise 4.8% to $3.8 billion, but profit margin contracted 200 basis points to 6.9%. Industrial segment sales declined 1.2% to $2.2 billion with profit margin down 100 basis points to 11.9%.

Genuine Parts is implementing a global restructuring initiative to address the challenging environment, including a voluntary retirement offer in the U.S. and optimization of its distribution network.

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Source: Investing.com