Genuine Parts (NYSE: GPC) reported Q2 EPS of $1.59, $0.01 better than the analyst estimate of $1.58. Revenue for the quarter came in at $4.82 billion versus the consensus estimate of $4.68 billion.

Paul Donahue, President and Chief Executive Officer, commented, "We are pleased to report another quarter of record sales, driven by the favorable impact of strategic acquisitions and improved organic sales trends across our business segments. The positive shift in the underlying sales environment in the automotive business is especially encouraging and, combined with the execution of our plans to drive operating improvement, including plans to address our automotive margin, we are optimistic for improved margin trends as we move ahead."

Mr. Donahue concluded, "We enter the second half of 2018 excited for the opportunities ahead at GPC. As we move forward with the planned spin-off of our Business Products Group, we remain committed to our core growth and higher-margin global automotive and industrial businesses. To this end, we are focused on the further strengthening of our core sales growth, maximizing the benefits of our acquisitions and effectively reducing our cost structure to improve our operating results and enhance our long-term sales and profit outlook."

2018 Outlook

The Company is raising its sales guidance to be up 13% to 14%, an increase from the prior guidance of up 12% to 13%. The Company expects diluted earnings per share to range from $5.49 to $5.64 and is reiterating its earnings guidance for adjusted diluted earnings per share, which excludes any transaction-related costs, of $5.60 to $5.75. The Company currently expects a tax rate of approximately 25.0%, which is down slightly from the prior guidance of approximately 26.0% for 2018.

GUIDANCE:

Genuine Parts sees FY2018 EPS of $5.60-$5.75, versus the consensus of $5.64.

For earnings history and earnings-related data on Genuine Parts (GPC) click here.