(Reuters) - Automotive parts distributor Genuine Parts on Thursday raised its profit forecast for 2023 driven by robust demand for replacement parts.
Labor shortages and elevated input costs have shot up prices for new cars, forcing cash strapped consumers to turn to repairing their ageing vehicles.
The Atlanta-based distributor has also been implementing measures to improve its cost management through the months to counter soaring operating costs.
The company lifted the lower end of its 2023 outlook range for adjusted earnings to between $9.20 and $9.30 per share, from a prior guidance of $9.15 to $9.30 per share.
It maintained annual sales growth outlook at 4% to 6%.
Genuine Parts also beat third quarter profit expectations on the back of solid growth across its automotive and industrial segments.
However, the company said its U.S. automotive parts business performed below expectations, hurt by one less selling day in the quarter.
Without elaboration, it said it was taking "swift actions" to address the key factors that had impacted U.S. automotive sales.
Genuine Parts reported a third quarter adjusted net income of $351.2 million, or $2.49 per share, compared to analysts' estimate of $2.40 per share.
Third quarter net sales amounted to $5.82 billion, slightly below estimates of $5.92 billion.