Back to top

Image: Bigstock

Genuine Parts Q1 Earnings Surpass Expectations, Decrease Y/Y

Read MoreHide Full Article

Genuine Parts Company (GPC - Free Report) reported first-quarter 2025 adjusted earnings of $1.75 per share, which beat the Zacks Consensus Estimate of $1.66. The bottom line, however, declined from the year-ago quarter’s earnings of $2.22 per share. 

See the Zacks Earnings Calendar to stay ahead of market-making news.

The company reported net sales of $5.87 billion, which surpassed the Zacks Consensus Estimate of $5.82 billion and inched up 1.4% year over year. This increase was due to a 3% boost from acquisitions.

Genuine Parts Company Price, Consensus and EPS Surprise

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 2.5% year over year on acquisition benefits. The sales also surpassed our estimate of $3.61 billion. The segment’s comparable sales fell 0.8% year over year. Operating profit decreased 10.7% to $286 million and missed our forecast of $309.8 million. Segment profit margin came in at 7.8%, down 110 basis points from the year-ago period.

The Industrial Parts segment’s net sales declined 0.4% year over year to $2.20 billion, owing to a decline in comps and unfavorable forex translations. The sales also lagged our estimate of $2.23 billion. The segment’s comparable sales decreased 1% in the reported quarter. Operating profit remained flat compared to the prior-year quarter at $279 million and surpassed our projection of $267.7 million. The profit margin of 12.7% expanded 10 basis points year over year.

Financial Performance

Genuine Parts had cash and cash equivalents worth $420.4 million as of March 31, 2025, down from $490 million as of Dec. 31, 2024. Long-term debt increased to $3.78 billion from $3.74 billion as of Dec. 31, 2024. The company exited the first quarter with $1.6 billion in total liquidity. The company reported negative free cash flow (FCF) of $160.7 million in the first quarter of 2025.

Genuine Parts Reaffirms 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 the growth of 1.6% in 2024. The company envisions adjusted earnings per share between $7.75 and $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 #4 (Sell) at present.

Some better-ranked stocks in the auto space are China Yuchai International Limited (CYD - Free Report) , Standard Motor Products, Inc. (SMP - Free Report) and Suzuki Motor Corporation (SZKMY - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for CYD’s 2025 sales and earnings indicates year-over-year growth of 9.17% and 36.84%, respectively. EPS estimates for 2025 have improved 25 cents in the past 60 days.

The Zacks Consensus Estimate for SMP’s 2025 sales and earnings implies year-over-year growth of 16.61% and 11.04%, respectively. EPS estimates for 2025 have improved 9 cents in the past 60 days.???EPS estimates for 2026 have improved by a penny in the past 30 days.

The Zacks Consensus Estimate for SZKMY’s 2025 sales and earnings indicates year-over-year growth of 8.59% and 48.43%, respectively. EPS estimates for 2025 and 2026 have improved 56 cents and 39 cents, respectively, in the past 60 days.

Published in