Genuine Parts Company (GPC), a leading distributor of automotive and industrial replacement parts, saw its stock price plummet by over 20% on Tuesday after reporting disappointing third-quarter earnings results and slashing its full-year guidance.

For the quarter ended September 30, 2024, the company reported net sales of $5.97 billion, a 2.5% increase from the prior year but slightly above analysts' expectations of $5.94 billion. However, Genuine Parts' adjusted earnings per share (EPS) of $1.88 fell significantly short of the consensus estimate of $2.42, marking a 24.5% year-over-year decrease.

The weak performance was primarily attributed to continued challenges in the industrial segment and market conditions in Europe. Despite a 4.8% increase in global automotive sales driven by acquisitions, the industrial segment witnessed a 1.2% decline in sales, with a 2.4% decrease in comparable sales.

Will Stengel, President and CEO of Genuine Parts, acknowledged the challenges, stating, "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."

In response to the disappointing performance, Genuine Parts revised its full-year outlook, lowering its revenue growth expectations to 1% to 2%, down from the previous range of 1% to 3%. Additionally, the company cut its adjusted diluted EPS guidance to $8.00 to $8.20, down from the previous estimate of $9.30 to $9.50.