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Dec 31, 2020
Genuine Parts Q4 2020 Earnings Report
Sales decreased slightly, but adjusted EPS increased due to strategic actions and improved margins.
Key Takeaways
Genuine Parts Company reported fourth-quarter sales of $4.3 billion, a slight decrease of 0.7% year-over-year. However, adjusted diluted EPS from continuing operations increased by 19.7% to $1.52, driven by improved gross margins and lower operating expenses.
Sales were $4.3 billion, down 0.7% from the same period in 2019.
Diluted EPS from Continuing Operations was $1.18, up 119%.
Adjusted Diluted EPS from Continuing Operations was $1.52, up 19.7%.
Automotive sales were up 0.7%, while Industrial sales were down 3.3%.
Revenue by Segment
Forward Guidance
The Company is reinstating its practice of providing full-year guidance. The Company considered its current growth plans, strategic initiatives, recent business trends, global economic outlook and the continued uncertainty of COVID-19 and its potential impact on our results, in establishing its full-year 2021 guidance.
Positive Outlook
- Total sales growth of 4% to 6%
- Automotive sales growth of 4% to 6%
- Industrial sales growth of 3% to 5%
- Diluted earnings per share of $5.55 to $5.75
- Net cash provided by operating activities of $1.0 billion to $1.2 billion
Challenges Ahead
- Continued uncertainty of COVID-19 and its potential impact on our results
- Global economic outlook
- Effective tax rate of 24.5% to 25.5%
- Capital expenditures of $275 million to $325 million
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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