Genuine Parts Q1 Earnings: Reports Sales Growth Of 8.8%, With Adjusted EPS Beating Analyst Estimates

Genuine Parts Co GPC reported first-quarter FY23 sales growth of 8.8% year-on-year to $5.76 billion, beating the analyst consensus estimate of $5.67 billion.

• • The company attributed the sales growth to an 8.7% increase in comparable sales and a 2.4% benefit from acquisitions.
  • Automotive Group sales grew 7% Y/Y. This segment's profit margin decreased 60 basis points to 7.9%.
  • Sales for the Industrial Parts Group rose 11.9%, and the segment's profit margin expanded 230 basis points to 11.6%.
  • Adjusted EPS of $2.14 beat the analyst consensus of $2.03.
  • Gross profit increased 10.3% Y/Y to $2 billion. Selling, administrative and other expenses were $1.5 billion, an 7.6% rise Y/Y.
  • Cash and equivalents totaled $651.2 million as of March 31, 2023. Net cash generated from operating activities for the quarter totaled $197.5 million.
  • Paul Donahue, Chairman and CEO, said, "We benefited from our business mix and the geographic diversity of our operations with continued strong performances in our international automotive businesses and in the industrial segment."
  • Outlook: Genuine Parts sees FY23 revenue growth of 4% - 6%. 
  • It raised FY23 adjusted EPS outlook from $8.80 - $8.95 to $8.95 - $9.10 versus the consensus of $8.92.
  • The company expects FY23 free cash flow of $800 million - $1.0 billion.
  • Price Action: GPC shares were trading 1.21% higher at $168.51 on Thursday morning.