Core Insights - Genuine Parts Company (GPC) has appointed Jenn Hulett as Executive Vice President and Chief People Officer, effective August 19, 2024, succeeding Jim Neill, who will remain in an advisory role until September 30, 2024 [1][2] Group 1: Leadership Transition - Jenn Hulett will oversee GPC's global human resources operations and will be instrumental in advancing the company's talent and culture initiatives [2] - Jim Neill has been with GPC for nearly two decades, contributing significantly to the company's culture and work environment [4] Group 2: Executive Background - Jenn Hulett brings extensive experience, having previously served as Executive Vice President and Chief People Officer for Dollar Tree, a $28 billion organization with 200,000 employees [3] - Her career includes leadership roles at Core-Mark, Ericsson, and General Electric, showcasing her capability in executing talent initiatives within large organizations [3] Group 3: Company Overview - Genuine Parts Company, established in 1928, is a leading global service provider of automotive and industrial replacement parts, operating in 17 countries with over 10,700 locations and more than 60,000 employees [4]

Core Viewpoint - Genuine Parts Company (GPC) has faced significant headwinds due to weak consumer demand and high-interest rates, impacting its financial performance and guidance for 2024 [2][5][13] Financial Performance - GPC reported Q2 earnings with revenue of $6 billion and EPS of $2.44, missing analysts' estimates by $40 million and $0.15 respectively [5] - The company has missed revenue estimates in every quarter over the past year, while beating earnings estimates, indicating the impact of high-interest rates on consumer spending [5][6] - For FY24, GPC's EPS guidance has been lowered to a range of $9.30 - $9.50, down from $9.80 - $9.95, reflecting a growth rate of 0% - 2% [5][9] Dividend Safety - GPC's dividend payout ratio has increased to 79.3%, up from 54% in October, raising concerns about sustainability [8][9] - The company increased its dividend by 5% to $1.00 per quarter, marking the 68th consecutive year of increases [8] - Free cash flow (FCF) for the first half of the year was $352.7 million, with $279.7 million paid in dividends, indicating a significant payout ratio [8][9] Acquisitions and Growth Strategy - GPC has made strategic acquisitions, including Gaudi and Motor Parts & Equipment Corporation, to enhance its market position and gross margin [4][7] - Despite headwinds, GPC's global automotive segment saw a 2% increase, contributing to a 6% year-over-year sales growth [7] Balance Sheet Strength - GPC's net debt to EBITDA ratio increased to 1.8x, remaining within the management's target range of 2x - 2.5x [10] - The company has $2 billion in liquidity, with $555 million in cash, providing a cushion for growth initiatives [10] Valuation - GPC's forward P/E ratio is 14.7x, below the sector median of 15.15x and significantly below its 5-year average of 18.73x, suggesting it may be undervalued [11] - The company is expected to offer strong upside potential of nearly 37% over the next 16 months as interest rates decrease and consumer confidence improves [11]

Genuine Parts (GPC) reported $5.96 billion in revenue for the quarter ended June 2024, representing a yearover-year increase of 0.8%. EPS of $2.44 for the same period compares to $2.44 a year ago. The reported revenue represents a surprise of -1.34% over the Zacks Consensus Estimate of $6.04 billion. With the consensus EPS estimate being $2.59, the EPS surprise was -5.79%. While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street ...

Genuine Parts Company (GPC) reported second-quarter 2024 adjusted earnings of $2.44 per share, which missed the Zacks Consensus Estimate of $2.59 per share. The bottom line remained flat year over year. Segmental Performance Financial Performance Revised 2024 Guidance GPC currently carries a Zacks Rank #4 (Sell). The Zacks Consensus Estimate for VLVLY's 2024 earnings suggests year-over-year growth of 6.49%. EPS estimates for 2024 and 2025 have moved up 9 cents and 8 cents, respectively, in the past seven da ...

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].