Genuine Parts (GPC) fell after the auto-parts distributor revised its earnings and sales guidance following second-quarter results that were below expectations.
The outlook revision came a month after Atlanta-based company completed its acquisitions of The Netherlands-based PartsPoint Group and Australia-headquartered Inenco Group. Both companies are parts distributors in their regions, and terms of the deals weren’t disclosed.
Citing continued softness in its European operations and its PartsPoint and Inenco acquisitions, Genuine Parts said it expects full-year 2019 sales to increase 4.5% to 5.5%, but that includes a 2% contribution from the acquisitions. It previously expected a 3% to 4% advance.
Chief Executive Paul Donahue the company “in Europe remained challenged by transitory factors such as the mild winter weather and a softening economic environment.”
Genuine Parts cut its adjusted diluted per-share earnings guidance to $5.65 to $5.75 from $5.75 to $5.90, which includes a $0.05 contribution from PartsPoint and the 65% investment in Inenco.
Genuine Parts shares were down 4% in afternoon trading.
For the second quarter ended June 30, the company reported adjusted diluted per-share earnings of $1.57, down two cents from the prior-year period and below the Capital IQ consensus of $1.65. Sales were $4.93 billion, up from $4.82 billion last year. The Street had expected nearly $5 billion.