Shares of Genuine Parts Company (GPC) surged 5.16% in pre-market trading on Tuesday after the automotive and industrial parts distributor reported better-than-expected first-quarter earnings and reaffirmed its full-year 2025 outlook.
The company reported adjusted earnings per share of $1.75 for Q1 2025, surpassing analysts' estimates of $1.68. While this represents a decrease from $2.22 in the same period last year, investors were encouraged by the company's ability to exceed expectations in a challenging environment.
Genuine Parts posted quarterly revenue of $5.87 billion, slightly above the consensus estimate of $5.83 billion and representing a 1.4% increase year-over-year. The growth was primarily driven by a 3.0% benefit from acquisitions, partially offset by a 0.8% decrease in comparable sales and a 0.8% unfavorable impact from foreign currency and other factors.
"We had a solid start to 2025, despite the tariffs and trade dynamics that are impacting the operating landscape," said Will Stengel, President and Chief Executive Officer. "We remain focused on what we can control—excellent customer service and our strategic initiatives to improve the business."
Investors were particularly pleased with Genuine Parts' decision to reaffirm its full-year 2025 guidance. The company continues to expect revenue growth of 2% to 4% and adjusted earnings per share in the range of $7.75 to $8.25. This outlook demonstrates management's confidence in the company's ability to navigate ongoing challenges and deliver solid results.
The stock's strong performance reflects investor optimism about Genuine Parts' resilience and strategic positioning in the automotive and industrial parts markets. As the company continues to focus on acquisitions and operational improvements, it appears well-positioned to capitalize on growth opportunities in the coming quarters.
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