Why Genuine Parts Stock Slipped 3% Today

Core Viewpoint - Genuine Parts reported better-than-expected sales and earnings, yet shares fell due to concerns over future guidance and profit margins [1][2]. Group 1: Earnings Performance - Genuine Parts earned $1.61 per share, surpassing analyst expectations of$1.55, with sales approaching $5.8 billion, exceeding the forecast of$5.7 billion [1][2]. - Quarterly sales increased by only 3.3% year over year, and gross profit margins decreased by 50 basis points to 35.9% due to an inventory write-down [2]. - For the full year, sales grew 1.7% to $23.5 billion, while earnings declined by 31$6.47 per share [3]. Group 2: Future Guidance - Management projected sales growth of only 2% to 4% for the upcoming year, with adjusted EPS expected to range from $7.75 to$8.25, below analysts' forecast of $8.29 [4]. - GAAP profits are anticipated to be lower, estimated between$6.95 to $7.45 per share [4]. - A significant charge related to the U.S. pension plan termination is expected to impact diluted EPS, although it is not included in the 2025 forecast [5].