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Jun 30, 2021

Genuine Parts Q2 2021 Earnings Report

Genuine Parts Company reported strong financial performance driven by strategic priorities and recovery in global markets.

Key Takeaways

Genuine Parts Company reported a strong second quarter with sales of $4.8 billion, up 25.1% compared to the same period last year. Diluted EPS from continuing operations was $1.36, and adjusted diluted EPS from continuing operations was $1.74, up 32% and a new record. The company also returned capital to shareholders via dividends and share repurchases and strengthened its balance sheet with strong cash flow.

Sales were $4.8 billion, up 25.1% compared to the same period of the prior year.

Diluted EPS from Continuing Operations was $1.36.

Adjusted Diluted EPS from Continuing Operations was $1.74, up 32% and a new record.

The company is updating its full-year 2021 guidance.

Total Revenue
$4.78B
Previous year: $3.82B
+25.1%
EPS
$1.74
Previous year: $1.32
+31.8%
Gross Profit
$1.69B
Previous year: $1.29B
+30.9%
Cash and Equivalents
$987M
Previous year: $984M
+0.4%
Free Cash Flow
$614M
Total Assets
$14.1B
Previous year: $13.3B
+6.2%

Genuine Parts

Genuine Parts

Genuine Parts Revenue by Segment

Forward Guidance

The Company is updating its full-year 2021 guidance previously provided in its earnings release on April 22, 2021.

Positive Outlook

  • Total sales growth 10% to 12%
  • Automotive sales growth 11% to 13%
  • Industrial sales growth 6% to 8%
  • Diluted earnings per share $5.81 to $5.96
  • Adjusted diluted earnings per share $6.20 to $6.35

Challenges Ahead

  • Effective tax rate Approx. 25%
  • Net cash provided by operating activities $1.2 billion to $1.4 billion
  • Free cash flow $900 million to $1.1 billion
  • The Company considered its recent business trends and financial results
  • The Company considered the continued uncertainty of COVID-19 and its potential impact on our results.

Revenue & Expenses

Visualization of income flow from segment revenue to net income