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Genuine Parts (GPC) Q1 Earnings Miss, Revenues Top

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Genuine Parts Company (GPC - Free Report) , based in Atlanta, GA, distributes automotive and industrial replacement parts, office products and electrical/electronic materials in the U.S., Canada and Mexico.

Genuine Parts has undertaken various initiatives to boost sales and earnings, such as product-line expansion, penetration into new markets and cost-saving activities. However, high level of inventory is a challenge for the company. The high proportion of inventory in current assets can affect short-term liquidity of the company in periods of low sales.

Estimate Trend & Surprise History

The company has a mixed record of earnings surprises. It has surpassed the Zacks Consensus Estimate in two of the trailing four quarters and missed in two, leading to an average miss of around 0.39%. Thus investors are eagerly waiting for the quarterly reports of Genuine Parts.

Genuine Parts Company Price and EPS Surprise

Zacks Rank

Genuine Parts currently has a Zacks Rank #3 (Hold), but that could change following its earnings report which was just released. You can see the complete list of today’s Zacks #1 Rank stocks (Strong Buy) here.

We have highlighted some of the key stats from this earnings announcement below:

Earnings

Genuine Parts’ earnings were $1.29 per share in the second quarter of 2017, higher than $1.28 recorded in the year ago quarter. However, earnings per share missed the Zacks Consensus Estimate of $1.31.

Revenues

Genuine Parts reported revenues of $4.1 billion, up 5% year over year. Revenues surpassed the Zacks Consensus Estimate of $4.04 billion.

Key Stats/Developments to Note

For 2017, Genuine Parts continues to expect annual revenue to increase 3% to 4%. Earnings per share in 2017 are expected to be in the range of $4.75–$4.85, similar to the prior-quarter guidance.

Market Reaction

Genuine Parts' shares have declined roughly 0.06% till now. It would be interesting to see how the market reacts to the results during the trading session today.

Check back later for our full write up on Genuine Parts’ earnings report!

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