Genuine Parts Surges To Lead S&P 500 Gains Thursday—Here’s Why
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Key Takeaways
Genuine Parts beat profit estimates and raised its outlook as acquisitions helped lift automotive parts sales.
The company behind the NAPA Auto Parts brand saw a decline in sales at its Industrial Parts Group.
CFO Will Stengel said Genuine Parts showed operating discipline as it faced slow sales growth.
Genuine Parts (
GPC
) was the best-performing stock in the S&P 500 in intraday trading Thursday as shares surged close to 11% after the automotive and industrial parts distributor beat profit estimates and raised its
guidance
as it benefited from acquisitions.
The owner of the NAPA Auto Parts brand posted first quarter
earnings per share (EPS)
of $1.78, exceeding forecasts. Revenue rose 0.3% from a year ago to $5.78 billion, short of expectations.
Sales at the company’s Global Automotive unit were up 1.9% to $3.57 billion, boosted by a 0.2% increase in
comparable sales
and a 2.8% benefit from acquisitions. Industrial Parts Group sales declined 2.2% to $2.21 billion, dragged down by a 2.6% comparable sales drop.
CFO Will Stengel said the firm showed “operating discipline that delivered improved overall earnings against a backdrop of low sales growth.”
Genuine Parts now anticipates full-year EPS in a range of $9.80 to $9.95, up from the previous outlook of $9.70 to $9.90.
Shares of Genuine Parts were up 10.9% at $159.86 as of 3:30 p.m. ET Thursday. With Thursday’s advance, shares of Genuine Parts have gained about 15% so far this year.
