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Investing.com -- Genuine Parts Company (NYSE:GPC) on Tuesday reported second quarter earnings that exceeded analyst expectations, with adjusted earnings per share of $2.10, beating estimates by $0.03, and revenue of $6.2 billion surpassing the consensus estimate of $6.11 billion.
Despite the quarterly beat, the automotive and industrial parts distributor revised its full-year guidance downward, citing tariff impacts and challenging market conditions.
The company reported a 3.4% increase in total sales compared to the same period last year, driven by a 2.6% contribution from acquisitions, a 0.6% favorable impact from foreign currency, and a modest 0.2% increase in comparable sales. GPC’s stock slipped 0.7% following the announcement.
"Our results for the quarter were in line with our expectations and reflect the execution of our strategic initiatives and cost restructuring actions against continued challenging market conditions," said Will Stengel, President and Chief Executive Officer.
The company’s Automotive Parts Group saw sales rise 5.0% to $3.9 billion, while Industrial Parts Group sales increased 0.7% to $2.3 billion.
However, segment EBITDA margin in the Automotive division declined 110 basis points to 8.6%, while Industrial segment EBITDA margin improved slightly by 10 basis points to 12.8%.
GPC lowered its full-year 2025 outlook, now projecting revenue growth of 1% to 3%, down from the previous guidance of 2% to 4%.
The company also reduced its adjusted earnings per share forecast to a range of $7.50 to $8.00, below the analyst consensus of $7.75 and lower than its previous guidance of $7.75 to $8.25.
CFO Bert Nappier explained the guidance revision: "While our results through the second quarter were in line with our expectations, we are updating full-year guidance to reflect our latest perspective on the second half of the year.
"Our outlook considers the impact of current U.S. tariffs along with our updated views on the market environment."
For the first six months of 2025, GPC reported sales of $12.0 billion, up 2.4% YoY, with adjusted earnings per share of $3.84, down 17.6% from $4.66 in the prior year period.
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