Genuine Parts Q1 Earnings Surpass Expectations, Decrease Y/Y

Core Viewpoint - Genuine Parts Company (GPC) reported mixed financial results for the first quarter of 2025, with adjusted earnings per share beating estimates but declining year-over-year, while net sales exceeded expectations and showed slight growth compared to the previous year [1][2]. Financial Performance - Adjusted earnings for Q1 2025 were $1.75 per share, surpassing the Zacks Consensus Estimate of$1.66 but down from $2.22 per share in the same quarter last year [1]. - Net sales reached$5.87 billion, exceeding the Zacks Consensus Estimate of $5.82 billion and reflecting a year-over-year increase of 1.4$420.4 million from $490 million as of December 31, 2024, while long-term debt rose to$3.78 billion from $3.74 billion [5]. Segmental Performance - The Automotive segment generated net sales of$3.7 billion, a 2.5% increase year-over-year, surpassing estimates, although comparable sales fell by 0.8% [3]. - The Industrial Parts segment's net sales declined by 0.4% year-over-year to $2.20 billion, missing estimates, with comparable sales down by 1$286 million, while the Industrial Parts segment's operating profit remained flat at $279 million [3][4]. Guidance - For 2025, the company anticipates revenue growth of 2-4$7.75 and $8.25, compared to$8.16 in 2024, with operating cash flow projected between $1.2 billion and$1.4 billion [6].