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Mar 31, 2023

Genuine Parts Q1 2023 Earnings Report

Genuine Parts Company reported record sales and increased EPS, driven by strong performance in international automotive and industrial segments, and updated its full-year outlook.

Key Takeaways

Genuine Parts Company reported record sales of $5.8 billion, an 8.9% increase year-over-year, and diluted EPS of $2.14, up 24.4%. The company's performance was driven by its multi-year strategic transformation and the geographic diversity of its operations. GPC updated its full-year outlook, increasing diluted EPS to $8.95 to $9.10 and cash from operations to $1.3 billion to $1.4 billion.

Record sales of $5.8 billion, up 8.9% year-over-year.

Diluted EPS of $2.14, up 24.4% year-over-year.

Global Automotive sales increased by 7.0%, driven by strong international performance.

Industrial sales increased by 11.9%, marking the eighth consecutive quarter of double-digit sales comps.

Total Revenue
$5.77B
Previous year: $5.3B
+8.9%
EPS
$2.14
Previous year: $1.86
+15.1%
Gross Profit
$2.01B
Previous year: $1.83B
+10.3%
Cash and Equivalents
$651M
Previous year: $611M
+6.6%
Free Cash Flow
$109M
Previous year: $321M
-65.9%
Total Assets
$16.9B
Previous year: $16.3B
+3.9%

Genuine Parts

Genuine Parts

Genuine Parts Revenue by Segment

Forward Guidance

The company updated its full-year 2023 guidance, reflecting confidence in its strategic plans and ability to execute through continued economic uncertainty.

Positive Outlook

  • Reaffirms total sales growth of 4% to 6%.
  • Reaffirms Automotive sales growth of 4% to 6%.
  • Reaffirms Industrial sales growth of 4% to 6%.
  • Increases diluted earnings per share to $8.95 to $9.10.
  • Increases cash from operations to $1.3 billion to $1.4 billion.

Challenges Ahead

  • Global economic outlook uncertainty.
  • Geopolitical conflicts and potential impact on results.
  • Potential impact of public health emergencies.
  • Uncertain credit markets and other macroeconomic conditions.
  • Volatile exchange rates.

Revenue & Expenses

Visualization of income flow from segment revenue to net income