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Genuine Parts' (GPC) Q3 Earnings Miss Estimate

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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 United States, 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, a 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 the other two, leading to an average miss of around 0.39%.

Zacks Rank

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

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

Earnings

Genuine Parts’ earnings were $1.08 per share in the third quarter of 2017, compared to than $1.24 recorded in the year-ago quarter. Adjusted earnings came in at $1.16 per share which missed the Zacks Consensus Estimate of $1.28.

Revenues

Genuine Parts reported revenues of $4.1 billion, up 3.9% year over year. The Zacks Consensus Estimate for revenue was $4.08 billion.

Key Stats/Developments to Note

For 2017, Genuine Parts raising annual revenue growth rate from 3%–4% to 4%–4.5%. Adjusted earnings per share in 2017 are expected to be in the range of $4.55–$4.60.

 

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