Summary: Genuine Parts, an automotive parts distributor, has increased its profit forecast for 2023 due to high demand for replacement parts in the face of rising prices for new cars. The company also reported beating third quarter profit expectations.
Genuine Parts, based in Atlanta, has raised its profit forecast for 2023 as a result of strong demand for replacement parts amid rising prices for new cars. This trend has led consumers to focus on repairing their existing vehicles. The company has been implementing cost management measures to counter increasing operating costs. It has adjusted its earnings outlook for 2023 to be between $9.20 and $9.30 per share. However, it maintained its annual sales growth outlook at 4% to 6%. In the third quarter, Genuine Parts exceeded profit expectations, driven by solid growth in its automotive and industrial segments. Despite this, the company acknowledged that its U.S. automotive parts business did not meet expectations due to one fewer selling day in the quarter. Genuine Parts said it is taking swift actions to address the factors that impacted U.S. automotive sales. The company reported a third quarter adjusted net income of $351.2 million, or $2.49 per share, surpassing analysts’ estimate of $2.40 per share. Third quarter net sales were $5.82 billion, slightly below estimates of $5.92 billion.
Tags: Genuine Parts, profit forecast, auto parts demand, replacement parts, rising car prices