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Dec 31, 2019

Genuine Parts Q4 2019 Earnings Report

Genuine Parts Company reported an increase in fourth quarter sales, driven by growth in the Automotive Group, but diluted EPS decreased due to restructuring and other charges.

Key Takeaways

Genuine Parts Company reported fourth quarter sales of $4.7 billion, a 2.2% increase compared to the same period in 2018. Diluted earnings per share were $0.06, while adjusted diluted earnings per share were $1.35. The company is establishing its full year 2020 sales guidance at Flat to up 1.0%, or up an adjusted 3.0% to 4.0% excluding the impact of the EIS and SPR Canada divestitures.

Fourth quarter sales increased by 2.2% to $4.7 billion.

Diluted EPS was $0.06, while adjusted diluted EPS was $1.35.

Automotive Group sales increased by 8.7%, while Industrial Group sales decreased by 5.9%.

The company is targeting $100 million cost savings run-rate by the end of 2020.

Total Revenue
$4.71B
Previous year: $4.6B
+2.2%
EPS
$1.35
Previous year: $1.35
+0.0%
Gross Profit
$1.59B
Previous year: $1.54B
+2.8%
Cash and Equivalents
$277M
Previous year: $334M
-17.0%
Free Cash Flow
$31.5M
Previous year: $79.2M
-60.2%
Total Assets
$14.6B
Previous year: $12.7B
+15.5%

Genuine Parts

Genuine Parts

Genuine Parts Revenue by Segment

Forward Guidance

The Company is establishing its full year 2020 sales guidance at Flat to up 1.0%, or up an adjusted 3.0% to 4.0% excluding the impact of the EIS and SPR Canada divestitures. The Company's guidance for diluted earnings per share is $5.80 to $5.90, an increase of 2% to 4%, or an adjusted 5% to 7% excluding the divestitures noted above.

Positive Outlook

  • Total sales growth 3% to 4%
  • Automotive sales growth 4% to 5%
  • Industrial sales growth 2% to 3%
  • Business Products sales growth -1% to -2%
  • Diluted earnings per share $5.80 to $5.90

Revenue & Expenses

Visualization of income flow from segment revenue to net income