Genuine Parts tumbles 20% amid weaker than expected Q3 report 📉

American leading supplier of auto parts, Genuine Parts (GPC.US) today is the worst performer among S&P 500 companies. The reason of that is weaker than expected quarterly report, where especially net earnings surprised Wall Street negatively.

• Net income came in at $227 million, or $1.62 a share, vs $351 million, or $2.49 a share, in the prior year’s quarter. Adjusted earnings per share came in $1.88, almost 30% below the consensus of $2.42. Sales were $5.97 billion, up from $5.82 billion in the Q3 2023, and slightly above the consensus of $5.94 billion. 
• For the full year 2024, the company also lowered its total expected sales growth to 1% to 2%, from the previous outlook of 1% to 3%, signalling diminishing short-term demand conditions. Genuine Parts also trimmed the earnings outlook to $6.60 to $6.80 a share, from its prior $8.55 to $8.75 a share. 
• The company commented that it saw 'continued weakness in market conditions in Europe and industrial business'. Still, the external environment remains challenging for the 2024, and Genuine Parts expect the combination of near-term actions and long-term investments to better position the company, for the future.

GPC stock dropped today, reacting to EMA200 resistance (the red line) at $144 per share. As for now, the most important support zone are $100-102 levels, supported by 61.8 Fibonacci retracement of the upward 2020 wave and previous price reactions. Stock is traded at 13 P/E ratio, and P/S below 1.