Why Genuine Parts Shares Are Rising Today After Q1 Earnings

Genuine Parts Company GPC shares are trading higher on Thursday.

The company reported first-quarter adjusted earnings per share of $2.22, beating the analyst consensus of $2.16. 

Quarterly revenues of $5.784 billion missed the street view of $5.844 billion.

Sales increased 0.3% year over year, which is attributable to a 1.9% benefit from acquisitions, offset by a 0.9% decrease in comparable sales and a 0.7% unfavorable impact of foreign currency and others.

Global Automotive sales were $3.6 billion, up 1.9% from the same period in 2023, while Industrial sales were $2.2 billion, down 2.2% year over year.

“In Automotive, the actions taken in our U.S. Automotive business are gaining traction, and we are encouraged by the sequential improvement in performance,” said Will Stengel, President and Chief Operating Officer.

The company generated cash flow from operations of $318 million for the first three months.

Genuine Parts ended the quarter with $2.5 billion in total liquidity, consisting of $1.5 billion availability on the revolving credit facility and $1.0 billion in cash and equivalents.

What’s Next?

Genuine Parts raised FY24 adjusted diluted EPS outlook to $9.80-$9.95 from $9.70-$9.90 (estimate: $9.78).

The company reaffirmed FY24 revenue growth of 3% to 5%.

Price Action: GPC shares are trading higher by 11.9% to $161.17 on the last check Thursday.