Genuine Parts (GPC) Reports Q4 2024 Sales Increase

By Bobby Samwell • Tuesday, February 18 10:17 • Permanent Link

Genuine Parts Company (GPC) has reported its fourth quarter and full-year 2024 results, along with its 2025 outlook. In the fourth quarter of 2024, the company achieved sales of $5.8 billion, reflecting a 3.3% increase from the same period in the prior year. This growth was driven by a 3.2% benefit from acquisitions and a net 0.6% favorable impact of foreign currency and other factors, partially offset by a 0.5% decrease in comparable sales.

The gross profit for the quarter was $2.1 billion, or 35.9% of sales, representing a 1.8% increase compared to the same period in the prior year. However, the company incurred a charge of $62 million related to the write-down of certain existing inventory associated with a global rebranding and relaunch of a key tool and equipment offering. Adjusting for this charge, the adjusted gross profit as a percentage of sales was 36.9%, an increase of 50 basis points from the same period in the prior year.

Net income for the fourth quarter was $133 million, or $0.96 per diluted earnings per share, compared to $317 million, or $2.26 per diluted share in the prior year period. Adjusted net income, which excludes certain expenses, was $224 million, or $1.61 per diluted earnings per share, compared to $317 million, or $2.26 per diluted share in the prior year period.

For the full-year 2024, GPC achieved sales of $23.5 billion, with diluted earnings per share of $6.47 and adjusted diluted earnings per share of $8.16. The company also generated cash from operations of $1.3 billion and free cash flow of $684 million. Additionally, GPC returned $705 million to shareholders through cash dividends and share repurchases.

Looking ahead to 2025, the company has provided an outlook of revenue growth of 2% to 4%, with adjusted diluted earnings per share expected to be in the range of $7.75 to $8.25. Furthermore, GPC has declared a dividend increase of 3%, marking the 69th consecutive year of dividend increases.

Following these announcements, the company's shares moved -4.4%, and are now trading at a price of $119.43. For more information, read the company's full 8-K submission here.

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