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%, driven by a 3% contribution from acquisitions [2]. - Cash and cash equivalents decreased to $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% [4]. - Operating profit for the Automotive segment decreased by 10.7% to $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% for both automotive and industrial segments, with overall sales growth projected in the same range compared to 1.6% growth in 2024 [6]. - Adjusted earnings per share are expected to be between $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].
Genuine Parts Q1 Earnings Surpass Expectations, Decrease Y/Y