GPC Earnings Prediction
The chart below shows how GPC performed 10 days before and after its earnings report, based on data from the past quarters. Typically, GPC sees a +0.70% change in stock price 10 days leading up to the earnings, and a +1.61% change 10 days following the report. On the earnings day itself, the stock moves by -2.97%. This data can give you a slight idea of what to expect for the next quarter's release.
GPC Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
5.77B
3.30%
-3.35%
Gross Margin
33.93%
-2.53%
-3.20%
Operating Margin
4.39%
-41.47%
-28.62%
Net Margin
2.31%
-59.26%
-39.21%
EPS
0.96
-57.71%
-40.74%
No Data Available
GPC Earnings Analysis
Genuine Parts Co Corporation (GPC.N) Earnings Conference Call
Positive
Earnings Per Share Beat: Genuine Parts Company reported an EPS of $1.61, exceeding expectations of $1.54.
Sales Growth Analysis: Total GPC sales reached $23.5 billion, an increase of approximately $400 million or 1.7% compared to 2023, with strategic acquisitions contributing 260 basis points to this growth.
Gross Margin Improvement: Adjusted gross margin increased by 70 basis points, driven by acquisitions and strategic pricing and sourcing initiatives.
Strong Cash Flow Generation: Generated strong cash flows with $1.3 billion of operating cash flow and returned over $700 million to shareholders through dividends and share repurchases.
Dividend Increase Announcement: The Board approved a 3% increase to the dividend, marking the 69th consecutive year of dividend increases.
Strategic Acquisitions Expansion: In 2024, GPC acquired over 100 companies, enhancing talent, geographic coverage, and capabilities.
Automotive Sales Growth: Global Automotive segment sales increased by approximately 4% compared to last year, with a significant contribution from acquisitions.
European Sales Growth: NAPA branded sales in Europe grew 16% versus 2023, reflecting successful brand expansion and execution of initiatives.
Asia Pacific Sales Growth: Asia Pacific sales increased 6% in local currency, with a fifth consecutive year of double-digit profit growth.
Technology and Operational Enhancements: The company is focused on improving technology and operational efficiencies, including a global HR rollout with Workday and enhancements in catalog and search capabilities using Google Cloud.
Negative
Sales Growth Slowdown: Sales growth was only 1.7% for the year, indicating a slowdown compared to previous years.
Global Industrial Sales Decline: The Global Industrial segment saw a decrease in sales of 1.4%, with comparable sales down 2%, reflecting weak market conditions and reduced customer demand.
Automotive EBITDA Margin Decline: The automotive segment's EBITDA margin decreased by 70 basis points, indicating pressure from a soft market environment and cost pressures, particularly in Europe and the U.S.
DIY Sales Decline: In the Global Automotive segment, sales to do-it-yourself customers were down low single digits, indicating a decline in consumer spending.
Cost Inflation Impact: The company faced significant cost inflation, particularly in salaries, wages, rent, and freight, which negatively impacted profitability.
EBITDA Margin Decline: The adjusted EBITDA margin decreased by 180 basis points year-over-year, primarily due to lower sales growth and higher cost inflation.
Earnings Decline Forecast: The company expects earnings to be down 15% to 20% in the first half of 2025, indicating continued challenges ahead.
Pension Plan Transition Impact: The transition of the U.S. pension plan is expected to lower pension income significantly, impacting earnings per share by an estimated $0.28 compared to 2024.
Currency Impact on Earnings: The company anticipates a negative impact of $0.15 per share from foreign currency fluctuations, particularly with the strengthening of the U.S. dollar.
Market Outlook 2025: Overall, the outlook for 2025 reflects weak market conditions and lower customer demand levels, with expectations for gradual improvement later in the year.
GPC FAQs
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GPC Earning Call Sentiment
Genuine Parts Company (NYSE:GPC) Q4 2024 Earnings Call Transcript
GPC.N
-0.7%Positive
The earnings call reveals a mixed financial performance with some positive aspects like increased sales and gross margin, but significant negatives such as lowered EPS guidance and industrial sales decline. The Q&A highlights persistent weak market conditions and management's vague responses on future guidance, adding uncertainty. Despite strategic acquisitions and cost-saving measures, the overall sentiment leans negative due to reduced guidance and unclear management responses.
