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Dec 31, 2024
Genuine Parts Q4 2024 Earnings Report
Genuine Parts reported modest revenue growth but faced a significant decline in profitability due to restructuring costs and inventory write-downs.
Key Takeaways
Genuine Parts Company saw Q4 revenue rise by 3.3% YoY, reaching $5.77 billion, primarily driven by acquisitions. However, net income fell sharply by 57.98% due to restructuring and inventory write-downs. Adjusted EPS declined by 28.76%. The company continues restructuring efforts into 2025 while targeting operational efficiency improvements.
Q4 revenue increased by 3.3% YoY, reaching $5.77 billion.
Net income dropped 57.98% YoY due to restructuring costs and inventory rebranding.
Adjusted EPS fell 28.76% YoY to $1.61.
The company expects 2025 revenue growth of 2-4% with cost-saving initiatives.
Genuine Parts
Genuine Parts
Genuine Parts Revenue by Segment
Revenue by Segment
Automotive Parts Revenue
CapyFin.comIndustrial Parts Revenue
CapyFin.com Forward Guidance
Genuine Parts expects revenue growth of 2-4% in 2025, with cost-saving initiatives aimed at improving profitability.
Positive Outlook
- Revenue growth expected between 2-4% in 2025.
- Adjusted EPS forecasted between $7.75 and $8.25.
- Free cash flow projected between $800M and $1B.
- Additional restructuring cost savings of $100M-$125M anticipated in 2025.
- Dividend increased by 3% to $4.12 per share annually.
Challenges Ahead
- Restructuring costs expected to continue into 2025.
- Macroeconomic conditions and softer end-market demand may impact results.
- Potential impact of geopolitical risks on supply chains and operations.
- Higher costs associated with global restructuring and store integration.
- Uncertainty regarding the one-time, non-cash charge related to the pension plan settlement.
Revenue & Expenses
Visualization of income flow from segment revenue to net income