UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2024 OR TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF ☐ 1934 For the transition period from to Commission file number: 1-5690 __________________________________________ GENUINE PARTS COMPANY (Exact name of registrant as specified in its charter) __________________ ...

Core Viewpoint - Genuine Parts (GPC) reported quarterly earnings of $2.44 per share, missing the Zacks Consensus Estimate of $2.59 per share, and matching the earnings from a year ago [1][6] Financial Performance - The company posted revenues of $5.96 billion for the quarter ended June 2024, which was 1.34% below the Zacks Consensus Estimate, compared to revenues of $5.92 billion a year ago [7] - This quarterly report represents an earnings surprise of -5.79% [6] - Over the last four quarters, the company has surpassed consensus EPS estimates three times [2] Market Position and Outlook - Genuine Parts has underperformed the market this year, with shares losing about 0.1% since the beginning of the year, while the S&P 500 gained 16.7% [12] - The estimate revisions trend for Genuine Parts is currently unfavorable, leading to a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [4] - The current consensus EPS estimate for the upcoming quarter is $2.67 on revenues of $6.07 billion, and for the current fiscal year, it is $9.86 on revenues of $23.75 billion [14] Industry Context - Genuine Parts operates within the Zacks Automotive - Retail and Wholesale - Parts industry, which is currently in the top 40% of over 250 Zacks industries [10] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, suggesting that industry outlook can significantly impact stock performance [9][10]

[Genuine Parts Company Q2 2024 Earnings Release](index=1&type=section&id=Genuine%20Parts%20Company%20Q2%202024%20Earnings%20Release) [Financial Highlights](index=1&type=section&id=Financial%20Highlights) The company reported modest Q2 sales growth to $6.0 billion but lowered its full-year 2024 outlook due to softer market conditions Q2 2024 Key Metrics | Metric | Q2 2024 Result | Change (YoY) | | :--- | :--- | :--- | | Sales | $6.0 billion | +0.8% | | Diluted EPS | $2.11 | -13.5% | | Adjusted Diluted EPS | $2.44 | In-line | 2024 Outlook Revision | 2024 Outlook | Previous Guidance | Updated Guidance | | :--- | :--- | :--- | | Revenue Growth | 3% to 5% | 1% to 3% | | Adjusted Diluted EPS | $9.80 to $9.95 | $9.30 to $9.50 | [Management Commentary](index=1&type=section&id=Management%20Commentary) Management acknowledged softer market conditions impacting demand but remains focused on long-term strategic execution - Quarterly results reflect softer than expected market conditions, tempering demand in **Industrial** and **U.S. and European Automotive** businesses[4](index=4&type=chunk) - The company remains focused on executing its long-term strategic initiatives despite the challenging macro-environment[4](index=4&type=chunk) [Performance Review](index=1&type=section&id=Performance%20Review) Q2 sales grew 0.8% to $6.0 billion driven by acquisitions, while six-month sales increased 0.6% to $11.7 billion [Second Quarter 2024 Results](index=1&type=section&id=Second%20Quarter%202024%20Results) | Metric | Q2 2024 | Q2 2023 | Change | | :--- | :--- | :--- | :--- | | Sales | $6.0 billion | $5.9 billion | +0.8% | | Net Income | $296 million | $344 million | -14.0% | | Diluted EPS | $2.11 | $2.44 | -13.5% | | Adjusted Net Income | $342 million | $344 million | -0.9% | | Adjusted Diluted EPS | $2.44 | $2.44 | In-line | - Sales growth of **0.8%** was driven by a **2.2% benefit from acquisitions**, partially offset by a **0.9% decrease in comparable sales** and a **0.5% unfavorable foreign currency impact**[5](index=5&type=chunk) - Adjusted net income for Q2 2024 excludes a net expense of **$46 million after-tax** ($0.33 per diluted share) related to restructuring and acquisition initiatives[6](index=6&type=chunk) [Segment Performance (Q2 2024)](index=2&type=section&id=Segment%20Performance%20(Q2%202024)) | Segment | Sales | Sales Change (YoY) | Comparable Sales | Segment Profit | Profit Margin | Margin Change (YoY) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Automotive | $3.7 billion | +2.0% | -0.6% | $314 million | 8.4% | -60 bps | | Industrial | $2.2 billion | -1.1% | -1.6% | $277 million | 12.4% | -10 bps | - Automotive sales growth was primarily due to a **3.1% benefit from acquisitions**[8](index=8&type=chunk) - Industrial sales declined due to a **1.6% decrease in comparable sales**, which was not fully offset by a **0.7% benefit from acquisitions**[9](index=9&type=chunk) [Six Months 2024 Results](index=2&type=section&id=Six%20Months%202024%20Results) | Metric | Six Months 2024 | Six Months 2023 | Change | | :--- | :--- | :--- | :--- | | Sales | $11.7 billion | $11.7 billion | +0.6% | | Net Income | $544 million | $648 million | -16.0% | | Diluted EPS | $3.89 | $4.58 | -15.1% | | Adjusted Net Income | $652 million | $648 million | +0.6% | | Adjusted Diluted EPS | $4.66 | $4.58 | +1.7% | [Financial Position and Cash Flow](index=2&type=section&id=Financial%20Position%20and%20Cash%20Flow) The company generated $353 million in free cash flow in H1 2024 and ended the quarter with $2.0 billion in total liquidity | Cash Flow Metric (Six Months 2024) | Amount | | :--- | :--- | | Cash Flow from Operations | $612 million | | Capital Expenditures | ($259 million) | | Free Cash Flow | $353 million | | M&A | ($580 million) | | Dividends Paid | ($272 million) | | Stock Repurchases | ($75 million) | - The company ended Q2 2024 with **$2.0 billion of total liquidity**, comprising **$555 million in cash** and **$1.4 billion available** on its revolving credit facility[12](index=12&type=chunk) [Revised 2024 Full-Year Outlook](index=2&type=section&id=Revised%202024%20Full-Year%20Outlook) The company lowered its full-year 2024 guidance for sales growth to 1-3% and adjusted diluted EPS to $9.30-$9.50 | Guidance Metric | Previous 2024 Outlook | Updated 2024 Outlook | | :--- | :--- | :--- | | Total sales growth | 3% to 5% | 1% to 3% | | Automotive sales growth | 2% to 4% | 1% to 3% | | Industrial sales growth | 3% to 5% | 0% to 2% | | Diluted earnings per share | $9.05 to $9.20 | $8.55 to $8.75 | | Adjusted diluted EPS | $9.80 to $9.95 | $9.30 to $9.50 | | Net cash from operating activities | $1.3B to $1.5B | Unchanged | | Free cash flow | $800M to $1.0B | Unchanged | - The updated guidance considers recent business trends, current growth plans, strategic initiatives, and the global economic outlook[13](index=13&type=chunk) [Financial Statements and Reconciliations](index=6&type=section&id=Financial%20Statements%20and%20Reconciliations) This section provides unaudited consolidated financial statements and reconciliations of non-GAAP financial measures [Consolidated Statements of Income](index=6&type=section&id=Consolidated%20Statements%20of%20Income) | (in thousands) | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net sales | $5,962,567 | $11,746,198 | | Gross profit | $2,180,303 | $4,254,958 | | Income before income taxes | $386,201 | $711,382 | | Net income | $295,544 | $544,438 | [Segment Information](index=7&type=section&id=Segment%20Information) | (in thousands) | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | **Net Sales** | | | | Automotive | $3,726,991 | $7,301,011 | | Industrial | $2,235,576 | $4,445,187 | | **Segment Profit** | | | | Automotive | $313,975 | $586,911 | | Industrial | $276,841 | $547,680 | [Consolidated Balance Sheets](index=8&type=section&id=Consolidated%20Balance%20Sheets) | (in thousands) | June 30, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Cash and cash equivalents | $555,277 | $1,102,007 | | Merchandise inventories, net | $5,103,644 | $4,676,686 | | Total current assets | $9,796,698 | $9,605,852 | | Total assets | $18,869,393 | $17,968,454 | | Total current liabilities | $8,766,413 | $7,827,109 | | Long-term debt | $3,027,491 | $3,550,930 | | Total equity | $4,556,123 | $4,416,985 | [Consolidated Statements of Cash Flows](index=9&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) | (in thousands) | Six Months Ended June 30, 2024 | Six Months Ended June 30, 2023 | | :--- | :--- | :--- | | Net cash provided by operating activities | $611,915 | $457,003 | | Net cash used in investing activities | ($762,026) | ($226,120) | | Net cash used in financing activities | ($382,326) | ($357,750) | | Net decrease in cash | ($546,730) | ($123,358) | [Non-GAAP Reconciliations](index=10&type=section&id=Non-GAAP%20Reconciliations) Reconciliation of GAAP to Adjusted Diluted EPS (Q2 2024) | Per Share Data | Q2 2024 | | :--- | :--- | | GAAP diluted EPS | $2.11 | | Restructuring and other costs | $0.27 | | Acquisition and integration costs | $0.17 | | Tax impact of adjustments | ($0.11) | | **Adjusted diluted EPS** | **$2.44** | Reconciliation to Free Cash Flow (Six Months Ended June 30) | (in thousands) | 2024 | 2023 | | :--- | :--- | :--- | | Net cash provided by operating activities | $611,915 | $457,003 | | Purchases of property, plant and equipment | ($259,245) | ($205,336) | | **Free Cash Flow** | **$352,670** | **$251,667** |

Financial Performance - Q2 2024 sales reached $6 billion, a 0.8% increase year-over-year[9] - Adjusted EBITDA for Q2 2024 was $591 million, a 4% decrease year-over-year[9] - The company's gross margin improved by 50 bps to 36.6%[9] - Free cash flow year-to-date increased by 40% to $353 million[9] Segment Performance - Automotive sales increased by 2% to $3.7 billion[22] - Industrial sales decreased by 1.1% to $2.2 billion[17] - North America industrial segment profit decreased by 2% to $277 million[13] - Automotive segment profit decreased by 5% to $314 million[23] Capital Allocation and Outlook - The company projects approximately $500 million in capital expenditures for 2024[33, 34] - The company spent approximately $75 million on share repurchases for approximately 510,000 shares year-to-date[33] - The company paid approximately $272 million in cash dividends year-to-date[33] - The outlook for adjusted diluted EPS has been revised to $9.30 to $9.50[34]

The company is revising full-year 2024 guidance previously provided in its earnings release on April 18, 2024. The company considered its recent business trends and financial results, current growth plans, strategic initiatives, global economic outlook, geopolitical conflicts and the potential impact on results in updating its guidance, which is outlined in the table below. Automotive Parts Group ("Automotive") Industrial sales were $2.2 billion, down 1.1% from the same period in 2023, with a 0.7% benefit f ...

Core Viewpoint - Genuine Parts is expected to report quarterly earnings of $2.59 per share, reflecting a year-over-year increase of +6.2% [11]. Earnings Estimates and Revisions - The Most Accurate Estimate for Genuine Parts is lower than the Zacks Consensus Estimate, indicating a bearish sentiment among analysts with an Earnings ESP of -5.91% [3]. - The consensus EPS estimate has remained unchanged over the last 30 days, suggesting a collective reassessment by covering analysts [17]. Revenue Expectations - Revenues for the upcoming quarter are projected to be $6.04 billion, which is a 2.1% increase from the same quarter last year [23]. Historical Performance - Over the last four quarters, Genuine Parts has successfully beaten consensus EPS estimates each time [20]. - The stock currently holds a Zacks Rank of 3, indicating a neutral outlook [19]. Market Sentiment and Predictions - A negative Earnings ESP reading does not necessarily predict an earnings miss, but it complicates the ability to confidently forecast an earnings beat [13]. - The combination of a positive Earnings ESP and a strong Zacks Rank significantly increases the likelihood of an earnings surprise, with a success rate of nearly 70% [8]. Additional Considerations - The stock's movement may not solely depend on earnings results, as other factors can influence investor sentiment [15]. - Management's discussion during the earnings call will be crucial for determining the sustainability of any immediate price changes and future earnings expectations [16].

chaofann Stocks can go through periods of underperformance for one reason or another, and a common refrain among investors may be to ask "what does the market know that I don't?" Having been in the investment game for quite some time, I would say that more often than not, so long as you do your due diligence, the market doesn't know any more than you do. Sometimes, an individual company or sector may simply be out of favor with big institutional firms, which often adopt a herd mentality and can "window dres ...

ATLANTA, July 2, 2024 /PRNewswire/ -- Genuine Parts Company (NYSE: GPC), a leading global distributor of automotive and industrial replacement parts, plans to release second quarter financial results on July 23, 2024. Following the release, management will host a conference call at 8:30 a.m. ET. The public may access the webcast and supplemental earnings materials on the company's investor relations website. The call is also available by dialing 1-800-836-8184. A replay of the call will be available on the ...

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Company Overview - Genuine Parts Company (GPC) is based in Atlanta and operates in the Auto-Tires-Trucks sector, with a year-to-date share price change of 4.83% [3] - The company currently pays a dividend of $1 per share, resulting in a dividend yield of 2.76%, which is slightly below the Automotive - Replacement Parts industry's yield of 2.78% and significantly above the S&P 500's yield of 1.58% [3] Dividend Performance - The annualized dividend of Genuine Parts is $4, reflecting a 5.3% increase from the previous year [4] - Over the past five years, the company has raised its dividend five times, achieving an average annual increase of 6% [4] - The current payout ratio stands at 43%, indicating that the company distributes 43% of its trailing 12-month earnings per share as dividends [4] Earnings Outlook - Genuine Parts is projected to experience earnings growth in the current fiscal year, with the Zacks Consensus Estimate for 2024 at $9.92 per share, representing a 6.32% increase from the previous year [5] Investment Considerations - The company is viewed as a compelling investment opportunity due to its attractive dividend and strong Zacks Rank of 2 (Buy) [7]