Shares fell after the company lowered 2024 earnings expectations.Genuine Parts (GPC -2.59%) shares fell hard this week after the global automotive and industrial parts giant reported some discouraging news about its short-term operating trends. The stock fell 20% through early Thursday trading, according to S&P Global Market Intelligence, compared to a modest decline for the S&P 500 index.That performance gap was due to Genuine Parts' Q3 earnings update, which showed surprisingly weak sales and profit trend ...

SARASOTA, Fla. and MIAMI, Oct. 24, 2024 (GLOBE NEWSWIRE) -- NAYA Biosciences (“NAYA”) (NASDAQ: NAYA), a life science portfolio company dedicated to bringing breakthrough treatments to patients in oncology, autoimmune diseases, and fertility, today announced an update regarding its clinic trial plans. The Company received regulatory approval from the Israeli Ministry of Health in July 2024 and subsequent institutional review board clearance to initiate patient enrollment in up to 7 academic centers for its c ...

Core Insights - The article discusses the investment position in GPC, indicating a beneficial long position through various means such as stock ownership and derivatives [1]. Group 1 - The author expresses personal opinions regarding GPC and clarifies that no compensation is received for the article, aside from Seeking Alpha [1]. - There is an emphasis on the necessity for investors to conduct their own due diligence and research before making any investment decisions [2]. - The article highlights that past performance does not guarantee future results, and no specific investment recommendations are provided [3].

For the quarter ended September 2024, Genuine Parts (GPC) reported revenue of $5.97 billion, up 2.5% over the same period last year. EPS came in at $1.88, compared to $2.49 in the year-ago quarter.The reported revenue represents a surprise of -0.14% over the Zacks Consensus Estimate of $5.98 billion. With the consensus EPS estimate being $2.44, the EPS surprise was -22.95%.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine t ...

PART I [Financial Statements](index=2&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements, including balance sheets, income statements, and cash flows, highlighting key financial changes and notes [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets increased to **$20.26 billion** by September 30, 2024, driven by inventory and goodwill, while liabilities also rose, resulting in a slight equity increase Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | September 30, 2024 | December 31, 2023 | | :--- | :--- | :--- | | **Total Current Assets** | $10,709,502 | $9,605,852 | | Merchandise Inventories, net | $5,527,034 | $4,676,686 | | Goodwill | $3,034,339 | $2,734,681 | | **Total Assets** | **$20,259,178** | **$17,968,454** | | **Total Current Liabilities** | $9,123,408 | $7,827,109 | | Trade Accounts Payable | $6,100,534 | $5,499,536 | | Long-term Debt | $3,806,950 | $3,550,930 | | **Total Liabilities** | $15,549,024 | $13,551,469 | | **Total Equity** | **$4,710,154** | **$4,416,985** | [Condensed Consolidated Statements of Income](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) Nine-month net sales slightly increased to **$17.72 billion**, but net income decreased to **$771.0 million** due to higher operating expenses and restructuring costs Income Statement Summary (in thousands, except per share data) | Metric | Nine Months Ended Sep 30, 2024 | Nine Months Ended Sep 30, 2023 | | :--- | :--- | :--- | | Net Sales | $17,716,396 | $17,504,726 | | Gross Profit | $6,453,399 | $6,257,385 | | Total Operating Expenses | $5,413,464 | $4,929,022 | | Restructuring and other costs | $153,825 | $0 | | Income Before Income Taxes | $1,008,975 | $1,323,555 | | **Net Income** | **$771,020** | **$999,649** | | **Diluted EPS** | **$5.51** | **$7.08** | [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Operating cash flow remained stable at **$1.10 billion**, while investing activities used **$1.25 billion** due to acquisitions, and financing activities provided **$124.8 million** Cash Flow Summary (in thousands) | Activity | Nine Months Ended Sep 30, 2024 | Nine Months Ended Sep 30, 2023 | | :--- | :--- | :--- | | Net Cash Provided by Operating Activities | $1,096,225 | $1,082,446 | | Net Cash Used in Investing Activities | ($1,245,192) | ($473,429) | | *Acquisitions of businesses* | *($954,207)* | *($218,177)* | | Net Cash Provided by (Used in) Financing Activities | $124,828 | ($599,019) | | Net (Decrease) Increase in Cash | ($23,889) | $1,174 | | **Cash and Cash Equivalents at End of Period** | **$1,078,118** | **$654,637** | [Notes to Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Key notes detail **$1.1 billion** in acquisitions, a **$200 million** global restructuring program, planned U.S. pension termination, and **$3.3 billion** in supply chain finance obligations - The company acquired various businesses for approximately **$1.1 billion** in the first nine months of 2024, including two of the largest independent NAPA Auto Parts store owners, MPEC and Walker, resulting in goodwill of **$270 million**[42](index=42&type=chunk)[43](index=43&type=chunk) - A global restructuring initiative was initiated in February 2024, incurring **$161 million** in costs for the nine months ended Sep 30, 2024, with total expected costs up to **$200 million** and substantial completion by the end of 2025[49](index=49&type=chunk)[50](index=50&type=chunk) - The Board approved the termination of the frozen U.S. qualified defined benefit pension plan, effective September 30, 2024, with a non-cash, pre-tax settlement charge of approximately **$620 million** expected upon settlement in late 2025 or early 2026[40](index=40&type=chunk) - The company utilizes voluntary Supply Chain Finance (SCF) programs, with outstanding payment obligations to financial institutions under these programs totaling **$3.3 billion** as of September 30, 2024[29](index=29&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=18&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q3 2024 results, noting a **2.5%** sales increase driven by acquisitions, a **35.5%** net income decline, and a strong **$2.6 billion** liquidity position [Results of Operations](index=20&type=section&id=Results%20of%20Operations) Q3 2024 net sales increased **2.5%** to **$6.0 billion**, but net income declined **35.5%** to **$227 million** due to higher expenses and restructuring costs Q3 2024 vs Q3 2023 Performance (in thousands) | Metric | Q3 2024 | Q3 2023 | % Change | | :--- | :--- | :--- | :--- | | Net Sales | $5,970,198 | $5,824,602 | 2.5% | | Gross Profit | $2,198,441 | $2,109,241 | 4.2% | | Net Income | $226,582 | $351,198 | (35.5)% | | Diluted EPS | $1.62 | $2.49 | (34.9)% | - Key drivers for the **35.5%** decline in Q3 net income include fixed cost deleveraging from lower comparable sales and increased costs related to personnel, rent, acquisitions, technology investments, depreciation, restructuring, and interest expense[56](index=56&type=chunk) [Segment Performance](index=22&type=section&id=Segment%20Performance) Q3 2024 Automotive sales grew **4.8%** to **$3.8 billion** but profit fell **18.6%**, while Industrial sales decreased **1.2%** to **$2.2 billion** with an **8.5%** profit decline Q3 2024 Segment Performance (in thousands) | Segment | Net Sales | % Change from Q3 2023 | Segment Profit | % Change from Q3 2023 | | :--- | :--- | :--- | :--- | :--- | | Automotive | $3,799,789 | 4.8% | $262,195 | (18.6)% | | Industrial | $2,170,409 | (1.2)% | $258,753 | (8.5)% | - Automotive segment profit margin decreased from **8.9%** to **6.9%** in Q3, while Industrial segment profit margin decreased from **12.9%** to **11.9%**, both impacted by inflation in personnel and rent costs[69](index=69&type=chunk)[70](index=70&type=chunk) [Non-GAAP Financial Measures](index=24&type=section&id=Non-GAAP%20Financial%20Measures) Non-GAAP measures show Q3 2024 adjusted net income of **$263.0 million** and adjusted EBITDA of **$476.7 million**, reflecting core operational performance Reconciliation of GAAP Net Income to Adjusted Net Income (Q3 2024, in thousands) | Description | Amount | | :--- | :--- | | GAAP Net Income | $226,582 | | Restructuring and other costs | $41,023 | | Acquisition and integration related costs | $4,273 | | Tax impact of adjustments | ($8,865) | | **Adjusted Net Income** | **$263,013** | Reconciliation of GAAP Net Income to Adjusted EBITDA (Q3 2024, in thousands) | Description | Amount | | :--- | :--- | | GAAP Net Income | $226,582 | | Depreciation and amortization | $106,036 | | Interest expense, net | $27,818 | | Income taxes | $71,011 | | Total adjustments (restructuring, etc.) | $45,296 | | **Adjusted EBITDA** | **$476,743** | [Financial Condition, Liquidity and Capital Resources](index=27&type=section&id=Financial%20Condition,%20Liquidity%20and%20Capital%20Resources) The company maintains a strong **$2.6 billion** liquidity position, issued **$750 million** in senior notes, and increased its annual dividend to **$4.00** per share - Total liquidity as of September 30, 2024, was **$2.6 billion**, comprising **$1.1 billion** in cash and **$1.5 billion** available under the revolving credit facility[86](index=86&type=chunk) - Issued **$750 million** of **4.95%** Senior Notes due 2029 in August 2024 to repay other debt and for general corporate purposes[86](index=86&type=chunk) - The company announced a **5.3%** dividend increase in 2024 to an annual rate of **$4.00** per share, marking the 68th consecutive year of increased dividends[86](index=86&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=27&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company reports no material changes in its market risk exposure since December 31, 2023 - There have been no material changes in the company's market risk exposure since December 31, 2023[87](index=87&type=chunk) [Controls and Procedures](index=27&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded disclosure controls and procedures were effective, with no material changes to internal control over financial reporting during the quarter - The CEO and CFO concluded that disclosure controls and procedures were effective as of the end of the reporting period[88](index=88&type=chunk) - No material changes to the company's internal control over financial reporting occurred during the quarter ended September 30, 2024[89](index=89&type=chunk) PART II [Legal Proceedings](index=29&type=section&id=Item%201.%20Legal%20Proceedings) The company faces **2,617** pending product liability lawsuits, with **$235 million** accrued for claims as of September 30, 2024 - The company faces approximately **2,617** pending product liability lawsuits[47](index=47&type=chunk)[91](index=91&type=chunk) - An amount of **$235 million** was accrued for pending and future product liability claims as of September 30, 2024[47](index=47&type=chunk) [Risk Factors](index=29&type=section&id=Item%201A.%20Risk%20Factors) The company refers to its 2023 Annual Report on Form 10-K for a comprehensive discussion of risk factors - The company refers to its 2023 Annual Report on Form 10-K for a comprehensive discussion of risk factors[92](index=92&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=29&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) In Q3 2024, the company repurchased **271,707** shares at an average of **$139.12** per share, with **7.8 million** shares remaining for repurchase Issuer Purchases of Equity Securities (Q3 2024) | Period | Total Shares Purchased | Average Price Paid Per Share | | :--- | :--- | :--- | | July 2024 | 102,784 | $138.64 | | August 2024 | 119,661 | $140.39 | | September 2024 | 49,262 | $137.02 | | **Total** | **271,707** | **$139.12** | - Approximately **7.8 million** shares remain available for repurchase under the board-authorized plan as of September 30, 2024[93](index=93&type=chunk) [Other Information](index=29&type=section&id=Item%205.%20Other%20Information) No directors or executive officers adopted, modified, or terminated Rule 10b5-1 trading plans during Q3 2024 - No directors or executive officers adopted, modified, or terminated a Rule 10b5-1 trading plan during Q3 2024[94](index=94&type=chunk) [Exhibits](index=30&type=section&id=Item%206.%20Exhibits) This section lists filed exhibits, including CEO/CFO certifications and XBRL data files - Filed exhibits include CEO/CFO certifications and XBRL interactive data files[95](index=95&type=chunk)

Shares of the auto parts chain fell on a disappointing earnings report.Shares of Genuine Parts (GPC -19.43%) were falling today after the Napa Auto Parts parent posted disappointing results in its third-quarter earnings report.While the company beat top-line estimates, it fell woefully short on the bottom line. As of 1 p.m. ET, the stock was down 19% on the news. Genuine Parts hits the brakesIn the quarter reported Tuesday, overall revenue rose 2.5% to $5.97 billion, though it would have declined slightly w ...

Genuine Parts Company (GPC) reported third-quarter 2024 adjusted earnings of $1.88 per share, which missed the Zacks Consensus Estimate of $2.44. The bottom line declined from year-ago earnings of $2.49 per share. Stay up-to-date with the quarterly releases: See Zacks Earnings Calendar.The company reported net sales of $5.97 billion, which marginally missed the Zacks Consensus Estimate of $5.98 billion but inched up 2.5% year over year. This increase was due to a 3.2% boost from acquisitions and a 0.1% impa ...

Financial Data and Key Metrics Changes - Total sales for Genuine Parts Company in Q3 2024 were approximately $6 billion, an increase of 2.5% year-over-year, driven by an extra selling day in the U.S. and acquisitions [12][30] - Adjusted diluted earnings per share in Q3 was $1.88, down from $2.49 in the previous year, reflecting various market pressures [13][35] - Gross margin improved to 36.8%, an increase of 60 basis points from last year, primarily due to acquisitions [32] Business Segment Data and Key Metrics Changes - Global Industrial segment sales were $2.2 billion, a decrease of approximately 1% year-over-year, with comparable sales down 2% [16] - Global Automotive segment sales were $3.8 billion, an increase of approximately 5%, with comparable store sales up slightly [19] - Industrial segment profit was $259 million, down approximately 8% year-over-year, while Global Automotive segment profit was $262 million, down approximately 19% [18][19] Market Data and Key Metrics Changes - In Europe, automotive sales growth was approximately 6% in local currency, but overall market growth remained muted, down low-single-digits [20] - Asia Pacific automotive sales increased approximately 7% in local currency, with comparable sales growth of 4% [22] - U.S. automotive sales increased 4% during the quarter, driven by acquisitions and an extra selling day [23] Company Strategy and Development Direction - The company is focused on evolving its business through investments in technology, supply chain, and sales effectiveness to create new competitive advantages [6][10] - Strategic acquisitions are a key element of growth, with over 450 NAPA stores acquired year-to-date, aiming for a balanced mix of company-owned and independently owned stores [28][47] - The company is committed to maintaining a disciplined capital allocation strategy while investing in long-term growth opportunities [7][46] Management's Comments on Operating Environment and Future Outlook - Management acknowledged that the current market conditions are challenging, with expectations of continued softness in demand for the remainder of 2024 [40][44] - The company remains optimistic about long-term fundamentals and believes that current market softness is temporary [28][50] - Management highlighted the importance of ongoing investments in technology and supply chain to enhance customer experience and position for future growth [66] Other Important Information - The company incurred $45 million in pretax costs related to restructuring efforts during the quarter, with expectations of benefits from these initiatives in 2024 [31][34] - The impact of hurricanes and a CrowdStrike outage negatively affected sales and operations, contributing to an estimated $0.06 reduction in earnings for the quarter [37][43] Q&A Session Summary Question: Can you provide more detail on the inventory increase and investments in freight? - Management indicated that the inventory increase is part of a strategy to enhance availability and depth, with acquired inventory also contributing to the balance sheet [51][52] Question: Was U.S. auto a primary source of profit disappointment? - Management clarified that margin pressure was consistent across all markets, with no specific region isolated as a primary source of disappointment [55][56] Question: What drove the increase in SG&A dollars? - The increase in SG&A was largely attributed to acquired businesses, with expectations that these costs will abate over time as integration progresses [61][62] Question: What motivates the decision to make incremental investments? - Management emphasized the importance of investing in the business to stay competitive and adapt to changing market conditions and technology landscapes [66][67]

Genuine Parts (GPC) came out with quarterly earnings of $1.88 per share, missing the Zacks Consensus Estimate of $2.44 per share. This compares to earnings of $2.49 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -22.95%. A quarter ago, it was expected that this auto and industrial parts distributor would post earnings of $2.59 per share when it actually produced earnings of $2.44, delivering a surprise of -5.79%.Over the last ...

Sales of $6.0 billionDiluted EPS of $1.62Adjusted Diluted EPS of $1.88Revises 2024 Outlook:Revenue Growth of 1% to 2% from 1% to 3%Adjusted Diluted EPS of $8.00 to $8.20 from $9.30 to $9.50ATLANTA, Oct. 22, 2024 /PRNewswire/ -- Genuine Parts Company (NYSE: GPC), a leading global service provider of automotive and industrial replacement parts and value-added solutions, announced today its results for the third quarter ended September 30, 2024."I would like to thank our global GPC teammates for their hard wor ...