Genuine Parts cuts 2024 earnings forecast on industrial business weakness; shares dip

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Earnings Per Share News

Industrial Segment,Genuine Parts

Shares of the company fell more than 9% in pre-market trading. Slower recovery in the European automotive aftermarket business has been a drag on the...

- Auto parts replacement provider Genuine Parts cut its 2024 earnings per share forecast on Tuesday, as third-quarter earnings per share missed estimates due to weakness in its industrial segment and market conditions in Europe.Slower recovery in the European automotive aftermarket business has been a drag on the Atlanta-based company, even as it tried to control costs through restructuring initiatives, including headcount management.

The company now expects 2024 industrial segment sales to decline by 2% to 1%, compared to its prior expectation of up to 2% growth. It now expects 2024 adjusted earnings per share to be in the range of $8.00 to $8.20, compared to its prior forecast of $9.30 to $9.50 per share.The company posted third-quarter adjusted earnings per share of $1.88, down from $2.49 last year and well below analysts' average estimate of $2.42, according to data compiled by LSEG.

 

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