Genuine Parts cuts 2024 earnings forecast on industrial business weakness; shares dip
Oct 22 (Reuters) -Auto parts replacement provider Genuine Parts GPC.N cut its 2024 earnings per share forecast on Tuesday, as third-quarter earnings per share missed estimates due to weakness in its industrial segment and market conditions in Europe.
Shares of the company fell more than 9% in pre-market trading.
Slower recovery in the European automotive aftermarket business has been a drag on the Atlanta-based company, even as it tried to control costs through restructuring initiatives, including headcount management.
Sales weakness also persists in the company's industrial segment which distributes a wide variety of industrial bearings and mechanical and fluid power transmission equipment.
The company now expects 2024 industrial segment sales to decline by 2% to 1%, compared to its prior expectation of up to 2% growth.
Genuine Parts also cut its full-year earnings per share forecast and lowered the top end of its sales forecast range.
It now expects 2024 adjusted earnings per share to be in the range of $8.00 to $8.20, compared to its prior forecast of $9.30 to $9.50 per share.
It expects total sales to grow by up to 2%, a revision to its earlier outlook of up to 3% growth.
The company posted third-quarter adjusted earnings per share of $1.88, down from $2.49 last year and well below analysts' average estimate of $2.42, according to data compiled by LSEG.
It reported quarterly revenue of $5.97 billion, compared to analysts' average estimate of $5.94 billion.
Reporting by Raechel Thankam Job and Ananta Agarwal; Editing by Shilpi Majumdar and Mrigank Dhaniwala
Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
