Genuine Parts Q3 Earnings Exceed Estimates; Lifts FY21 Outlook

Genuine Parts Co GPC reported third-quarter FY21 sales growth of 10.3% year-on-year, to $4.82 billion, beating the analyst consensus of $4.68 billion. Comparable store sales rose 7.6%.
Automotive Group sales grew 8.2% Y/Y and comprised 66% of total company revenue. This segment's profit margin declined 20 basis points to 8.8%.
Sales for the Industrial Parts Group rose 14.5% Y/Y and comprised 34% of total company revenues. This segment's profit margin increased 140 basis points to 10.3%.
Gross profit increased 12% Y/Y to $1.7 billion.
Selling, administrative and other expenses were $1.3 billion, a 17.4% rise Y/Y.
Genuine Parts held cash and equivalents of $919.1 million as of September 30, 2021. Cash provided by operating activities for the nine months totaled $1 billion with a free cash flow of $869.9 million.
Adjusted EPS of $1.88 beat the analyst consensus of $1.63.
"We are optimistic for the continued recovery in our Automotive and Industrial segments and improving fundamentals, and we are confident in our strategic plans to deliver long-term growth and margin expansion," said Chairman and CEO Paul Donahue.
Outlook: Genuine parts raised FY21 revenue growth guidance to 12% - 13%, versus prior outlook of 10% - 12%.
It expects FY21 Adjusted EPS of $6.60 - $6.65 from the previous guidance of $6.20 - $6.35, versus the consensus of $6.40.
Price action: GPC shares traded higher by 3.61% at $134.33 on the last check Thursday.

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