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Dec 31, 2021

Genuine Parts Q4 2021 Earnings Report

Reported a strong fourth quarter and full year 2021, driven by sales growth and margin improvement.

Key Takeaways

Genuine Parts Company reported a 13.0% increase in sales to $4.8 billion for the fourth quarter of 2021. Diluted EPS from continuing operations was $1.79, with adjusted diluted EPS also at $1.79, up 17.8%. The company highlighted its 17th consecutive quarter of year-over-year gross margin improvement and announced the acquisition of Kaman Distribution Group.

Sales increased by 13.0% to $4.8 billion.

Diluted EPS from continuing operations was $1.79.

Adjusted diluted EPS from continuing operations increased by 17.8% to $1.79.

Announced the acquisition of Kaman Distribution Group.

Total Revenue
$4.8B
Previous year: $4.25B
+13.0%
EPS
$1.79
Previous year: $1.52
+17.8%
Gross Profit
$1.69B
Previous year: $1.45B
+16.9%
Cash and Equivalents
$715M
Previous year: $990M
-27.8%
Free Cash Flow
$992M
Previous year: $1.9B
-47.8%
Total Assets
$14.4B
Previous year: $13.4B
+6.8%

Genuine Parts

Genuine Parts

Genuine Parts Revenue by Segment

Forward Guidance

The Company considered its past performance, business trends, current growth plans, strategic initiatives, global economic outlook and the continued uncertainty of COVID-19 and its potential impact on our results, in establishing its full-year 2022 guidance.

Positive Outlook

  • Total sales growth of 9% to 11%
  • Automotive sales growth of 4% to 6%
  • Industrial sales growth of 20% to 22%
  • Diluted earnings per share of $7.45 to $7.60
  • Adjusted diluted earnings per share of $7.45 to $7.60

Challenges Ahead

  • Approximate 2% headwind from foreign currency translation.
  • Continued uncertainty of COVID-19 and its potential impact on our results
  • Effective tax rate Approx. 25%
  • Net cash provided by operating activities $1.5 billion to $1.7 billion
  • Free cash flow $1.2 billion to $1.4 billion

Revenue & Expenses

Visualization of income flow from segment revenue to net income