(Reuters) – Genuine Parts Co beat first-quarter profit estimates and raised full-year earnings forecast on Thursday, helped by growing demand for auto and industrial parts.
Shares of the company were up 2.1% at $170.1 in premarket trading.
Strong demand for cars and trucks has kept older vehicles on the road for longer, driving demand for components and aftermarket services at parts distributors.
The Atlanta-based company said revenue from its automotive parts group segment in the quarter ended March 31 rose 7% to $3.5 billion over the year ago. The segment contributed nearly two-thirds to the company’s total sales in 2022.
The company forecasts adjusted earnings per share between $8.95 and $9.10 for 2023, up from its prior outlook of $8.80 to $8.95. Analysts on average were expecting a per share profit of $8.92, according to Refinitiv data.
Genuine Parts affirmed its previous outlook for total annual sales growth at 4% to 6%.
Its quarterly net income was $2.14 per share on a diluted basis, compared with analysts’ expectations of $2.03 per share, according to Refinitiv data.
The company’s total revenue in the first quarter rose 8.9% to $5.8 billion, beating average estimate of $5.67 billion.
(Reporting by Raechel Thankam Job; Editing by Shilpi Majumdar)
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