2023-07-20 08:10:21 ET
Genuine Parts Company ( NYSE: GPC ) slipped in early trading on Thursday after the auto parts retailer posted mixed guidance alongside its Q2 earnings report.
Sales growth of 5.6% in Q2 to $5.9B was attributable to a 4.9% increase in comparable sales and a 1.8% benefit from acquisitions, partially offset by a 1.1% net unfavorable impact of foreign currency and other. Global automotive sales were up 5.4% to $3.7B consisting of a 4.3% increase in comparable sales and a 2.6% benefit from acquisitions, net of a 1.5% unfavorable impact of foreign currency and other. Industrial sales were 5.9% higher to $2.3B, reflecting a 6.0% increase in comparable sales and a 0.6% benefit from acquisitions, slightly offset by a 0.7% unfavorable impact of foreign currency.
Chief Operating Officer update: "Global Automotive sales continue to benefit from our global diversification, as our businesses outside the U.S. posted mid-single-digit to double-digit growth in local currency in the second quarter... Our Industrial sales growth was broad based, with all product categories and major industries served growing from the prior year, allowing the Industrial team to post its twelfth consecutive quarter of margin expansion."
Net income was $344M for the quarter vs. $373M a year ago.
Looking ahead, GPC sees full-year sales growth of +4% to +6%, which reflects growth below the consensus expectation. Full-year EPS of $9.15 to $9.30 is expected vs. $8.95 to $9.10 prior and the consensus mark of $9.08.
Shares of Genuine Parts Company ( GPC ) fell 0.66% in premarket trading.
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Genuine Parts slips after sales guidance falls below the expectation of analysts