NAPA Auto Parts Parent's Stock Tumbles on Weak Profit, Lowered Outlook

Core Insights - Genuine Parts Co. (GPC) experienced a significant decline in its stock price, becoming the biggest decliner in the S&P 500 after its third-quarter profit missed analyst estimates [1][3] - The company faced macroeconomic challenges in several international markets, particularly in Europe and Australia, which negatively impacted its sales and is expected to continue through 2024 [2][3] - GPC has revised its full-year profit projections, now expecting earnings per share (EPS) between $6.60 to $6.80, down from a previous range of $8.55 to $8.75 [2] Financial Performance - GPC reported third-quarter revenue of $5.97 billion, narrowly beating consensus estimates, but its net income of $226.6 million fell short of the expected $338.4 million [1] - The company has lowered its total sales growth forecast to a maximum of 2% from a previous estimate of 3%, and now anticipates industrial sales to decline by 1% to 2% compared to earlier expectations of flat to 2% growth [2] Market Conditions - CEO Will Stengel indicated that the company is facing "market headwinds" in Europe and Australia, which have adversely affected sales and are likely to persist [3] - GPC shares dropped 20% to $114.30, marking their lowest point since March 2021, reflecting investor concerns over the company's outlook [3]