Genuine Parts cuts 2024 earnings forecast on industrial business weakness; shares dip

Genuine Parts

22/10/2024 12:49

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)
 ((RaechelThankam.Job@thomsonreuters.com;))