Yahoo Finance

• Total Sales: $5.9 billion, up 1.4% year-over-year.

• Gross Margin: 37.1%, an increase of 120 basis points from last year.

• Adjusted EPS: $1.75, down 21% from the prior year.

• Global Industrial Sales: $2.2 billion, approximately flat year-over-year.

• Global Automotive Sales: Increased 2.5%, with comparable sales decreasing 0.8%.

• Global Automotive EBITDA: $285 million, 7.8% of sales, a 110 basis point decrease from last year.

• US Automotive Sales: Up approximately 4%, with comparable sales down approximately 3%.

• Canada Automotive Sales: Increased approximately 5% in local currency, with comparable sales up approximately 4%.

• Asia Pacific Sales: Increased approximately 12%, with comparable sales growth of approximately 3%.

• Cash from Operations: Down $41 million; free cash flow down approximately $160 million.

• Capital Expenditures: Approximately $120 million invested back into the business.

• Dividends: Approximately $135 million returned to shareholders.

• Store Acquisitions: Acquired 44 stores from independent owners and competitors.

• Warning! GuruFocus has detected 4 Warning Signs with IVZ.

Release Date: April 22, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Genuine Parts Co (NYSE:GPC) reported total sales of $5.9 billion for the first quarter, up 1.4% compared to the same period last year, driven by acquisitions and improvements in the industrial business.

• The company achieved a gross margin expansion of 120 basis points year-over-year, benefiting from acquisitions and strategic pricing and sourcing initiatives.

• GPC's modernized e-commerce platform, NAPA PROLink, developed with Google, has received positive feedback and is contributing to mid-single-digit growth in NAPA B2B e-sales.

• The Global Industrial segment saw sequential improvement from the fourth quarter, with positive average daily sales in all three months of the first quarter.

• GPC reaffirmed its 2025 outlook, expecting adjusted diluted earnings per share to be in the range of $7.75 to $8.25, indicating confidence in its strategic initiatives and market positioning.

Negative Points

• The company faced a negative impact on sales growth due to one less selling day in the quarter, which affected sales by 110 basis points.

• Global Automotive segment EBITDA decreased by 110 basis points year-over-year, reflecting ongoing pressure from softer organic sales in the US and Europe.

• Adjusted earnings per share for the first quarter were down 21% from the prior year, impacted by lower pension income, higher depreciation and interest expense, and foreign currency headwinds.

• GPC's SG&A expenses as a percentage of sales increased by 170 basis points year-over-year, driven by higher salaries, merit adjustments, and rent expenses.

• The company is navigating a complex external environment with uncertainties around tariffs, trade policies, and inflation, which could impact future performance.