(Reuters) – 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.
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 Atlanta-based company, even as it tried to control costs through restructuring initiatives, including headcount management.
Sales weakness also persists in the company’s industrial segment which distributes a wide variety of industrial bearings and mechanical and fluid power transmission equipment.
The company now expects 2024 industrial segment sales to decline by 2% to 1%, compared to its prior expectation of up to 2% growth.
Genuine Parts also cut its full-year earnings per share forecast and lowered the top end of its sales forecast range.
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.
It expects total sales to grow by up to 2%, a revision to its earlier outlook of up to 3% growth.
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.
It reported quarterly revenue of $5.97 billion, compared to analysts’ average estimate of $5.94 billion.
(Reporting by Raechel Thankam Job and Ananta Agarwal; Editing by Shilpi Majumdar and Mrigank Dhaniwala)
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