Genuine Parts Company GPC reported fourth-quarter 2024 adjusted earnings of $1.61 per share, which beat the Zacks Consensus Estimate of $1.54. The bottom line declined from year-ago earnings of $2.26 per share. 

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The company reported net sales of $5.8 billion, which surpassed the Zacks Consensus Estimate of $5.69 billion and inched up 3.3% year over year. This increase was due to a 3.2% boost from acquisitions and a 0.6% impact from favorable foreign currency transactions.

Genuine Parts Company Price, Consensus and EPS Surprise

Genuine Parts Company price-consensus-eps-surprise-chart | Genuine Parts Company Quote

Segmental Performance

The Automotive segment’s net sales totaled $3.7 billion in the reported quarter, up 6.1% year over year on acquisition benefits and favorable impact of foreign currency. The top line surpassed our estimate of $3.6 billion. The segment’s comparable sales rose 0.2% year over year. Operating profit decreased 6.2% to $285 million but topped our forecast of $248.9 million. Segment profit margin came in at 7.8%, down 100 basis points from the year-ago period.

The Industrial Parts segment’s net sales declined 1.2% year over year to $2.1 billion owing to a decline in comps and unfavorable forex translations. The top line also lagged our estimate of $2.11 billion. The segment’s comparable sales decreased 1.7% in the reported quarter. Operating profit decreased 4.3% from the prior-year quarter to $271 million but surpassed our projection of $220.4 million. The profit margin of 12.9% contracted 40 basis points year over year in the fourth quarter of 2024.

Financial Performance

Genuine Parts had cash and cash equivalents worth $480 million as of Dec. 31, 2024, down from $1.1 billion as of Dec. 31, 2023. Long-term debt increased to $3.74 billion from $3.55 billion as of Dec. 31, 2023. The company exited the fourth quarter with $2 billion in total liquidity, comprising $1.5 billion on the revolving credit facility and the remainder as cash/cash equivalents. The company generated free cash flow (FCF) of $684 million in 2024.

The company hiked its quarterly cash dividend by 3% to $1.03 per share to be paid on April 2, 2025, to shareholders of record as of March 7, 2025. 

Genuine Parts Provides 2025 Guidance

For 2025, Genuine Parts expects year-over-year revenue growth of 2-4% for both automotive and industrial segments. Overall sales growth is projected in the range of 2-4% compared with growth of 1.6% in 2024. The company envisions adjusted earnings per share of $7.75 to $8.25 compared with $8.16 in 2024. Operating cash flow is expected in the band of $1.2-$1.4 billion. FCF is projected between $800 million and $1 billion.

GPC’s Zacks Rank & Key Picks

Genuine Parts carries a Zacks Rank #3 (Hold) at present.

Some better-ranked stocks in the auto space are Geely Automobile Holdings Limited GELYY, Dana Incorporated DAN and Garrett Motion Inc. GTX. While GELYY & DAN sport a Zacks Rank #1 (Strong Buy) each, GTX carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for GELYY’s fiscal 2025 sales and earnings indicates year-over-year growth of 66.62% and 149.31%, respectively. EPS estimates for fiscal 2025 and 2026 have improved by 15 cents and 38 cents, respectively, in the past 60 days. 

The Zacks Consensus Estimate for DAN’s 2025 earnings implies year-over-year growth of 79.17%. EPS estimates for 2025 have improved by 20 cents in the past 30 days.

The Zacks Consensus Estimate for GTX’s 2025 sales and earnings indicates year-over-year growth of 2.16% and 17.92%, respectively. EPS estimates for 2025 have improved by a penny in the past 30 days.

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Genuine Parts Company (GPC) : Free Stock Analysis Report

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