(Reuters) - Genuine Parts beat Wall Street estimates for fourth-quarter profit on Thursday, as the automotive parts distributor benefited from cost actions and buoyant demand.
High interest rates and pricier new vehicles have kept demand for replacement parts stable through the quarter.
The Atlanta-based company also benefited from cost-saving initiatives it undertook to offset the headwinds from rising expenses.
It has been increasingly investing to diversify its product offering to cater to the technology shift, driving up expenses.
On an adjusted basis, the company earned $2.26 in the fourth quarter, compared with analysts' estimates of $2.20 per share, according to LSEG data.
Genuine Parts also forecast adjusted earnings per share to be between $8.95 and $9.15 for 2024, compared with analysts' expectations of $9.82 per share.
Sales for the quarter rose about 1% to $5.6 billion, compared with a year earlier.
The company is undergoing a global restructuring to increase efficiencies across its business, Genuine Parts said, adding that the move is expected to cost between $100 million to $200 million in 2024.