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Genuine Parts (GPC) Q4 Earnings Beat Estimates, Up Y/Y
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Genuine Parts Company (GPC - Free Report) reported adjusted earnings of $1.12 per share, beating the Zacks Consensus Estimate of $1.11. Adjusted earnings per share in the year-ago quarter were $1.02.
The company recorded net income of $108.2 million in fourth-quarter 2017, down from $152.5 million in the prior-year quarter.
Genuine Parts reported net sales of $4.21 billion, up 11.3% year over year. The figure also surpassed the Zacks Consensus Estimate of $4.09 billion. Alliance Automotive Group (AAG), which was acquired in November 2017, contributed 6.8% in the sales figure.
Genuine Parts Company Price, Consensus and EPS Surprise
Operating profit increased to $313.3 million from $276.3 million in fourth-quarter 2016. Selling, administrative and other expenses rose to $1 billion from $856 million a year ago.
Full-Year 2017 Results
Genuine Parts reported adjusted earnings of $4.18 per share in 2017, down from $4.59 per share earned in 2016. The Zacks Consensus Estimate for earnings was $4.63 per share.
Net income was $617 million, down from $687 million in the prior year. Revenues increased to $16.3 billion from $15.3 billion in the prior-year. The figure also surpassed Zacks Consensus Estimate of $16.14 billion.
Segment Results
Revenues from the Automotive segment improved 16.7% to $2.3 billion from the year-ago figure of $1.9 billion. Moreover, the segment’s operating profit rose to $183.2 million in the reported quarter from $160 million a year ago.
Revenues at the Motion Industries or Industrial segment increased 7.4% to $1.24 billion. Operating profit at the segment was $102 million, up from $81 million in the year-ago quarter.
The Electrical or EIS segment’s revenues rose 8.9% year over year to $193 million. Operating profit, however, decreased to $13.5 million from $15.4 million in the year-ago quarter.
The S. P. Richards or Business Products segment’s revenues declined 2.2% to $467 million. Operating profit at the segment declined to $13.7million from $19.9 million recorded in the prior-year quarter.
Financial Position
Genuine Parts had cash and cash equivalents of $315 million as of Dec 31, 2017, up from $243 million as of Dec 31, 2016. Long-term debt increased to $2.6 billion as of Dec 31, 2017, from $550 million as of Dec 31, 2016.
In fourth-quarter 2017, capital expenditures decreased to $54.6 million from $74 million, in the year-ago period.
Dividend
The company reported that its board has approved a 7% increase in its quarterly cash dividend on common stock to 72 cents per share. The revised dividend will be paid on Apr 2 to shareholders of record as of Mar 9, 2017.
Guidance
For full-year 2018, Genuine Parts expects revenue growth rate in the range of 12-13%, whereas adjusted earnings per share are projected to be in the range of $5.6-$5.75. These anticipations include the benefits AAG’s full-year operations and roughly $80-$90 million in lower income taxes.
LKQ Corp. has an expected long-term growth rate of 16%. In the last six months, shares of the company have jumped 22.6%.
PACCAR has an expected long-term growth rate of 10%. In the last six months, shares of the company have gained 8.7%.
Volvo has an expected long-term growth rate of 15%. Over a year, shares of the company have rallied 45.1%.
Can Hackers Put Money INTO Your Portfolio?
Earlier this month, credit bureau Equifax announced a massive data breach affecting 2 out of every 3 Americans. The cybersecurity industry is expanding quickly in response to this and similar events. But some stocks are better investments than others.
Zacks has just released Cybersecurity! An Investor’s Guide to help Zacks.com readers make the most of the $170 billion per year investment opportunity created by hackers and other threats. It reveals 4 stocks worth looking into right away.
Image: Bigstock
Genuine Parts (GPC) Q4 Earnings Beat Estimates, Up Y/Y
Genuine Parts Company (GPC - Free Report) reported adjusted earnings of $1.12 per share, beating the Zacks Consensus Estimate of $1.11. Adjusted earnings per share in the year-ago quarter were $1.02.
The company recorded net income of $108.2 million in fourth-quarter 2017, down from $152.5 million in the prior-year quarter.
Genuine Parts reported net sales of $4.21 billion, up 11.3% year over year. The figure also surpassed the Zacks Consensus Estimate of $4.09 billion. Alliance Automotive Group (AAG), which was acquired in November 2017, contributed 6.8% in the sales figure.
Genuine Parts Company Price, Consensus and EPS Surprise
Genuine Parts Company Price, Consensus and EPS Surprise | Genuine Parts Company Quote
Operating profit increased to $313.3 million from $276.3 million in fourth-quarter 2016. Selling, administrative and other expenses rose to $1 billion from $856 million a year ago.
Full-Year 2017 Results
Genuine Parts reported adjusted earnings of $4.18 per share in 2017, down from $4.59 per share earned in 2016. The Zacks Consensus Estimate for earnings was $4.63 per share.
Net income was $617 million, down from $687 million in the prior year. Revenues increased to $16.3 billion from $15.3 billion in the prior-year. The figure also surpassed Zacks Consensus Estimate of $16.14 billion.
Segment Results
Revenues from the Automotive segment improved 16.7% to $2.3 billion from the year-ago figure of $1.9 billion. Moreover, the segment’s operating profit rose to $183.2 million in the reported quarter from $160 million a year ago.
Revenues at the Motion Industries or Industrial segment increased 7.4% to $1.24 billion. Operating profit at the segment was $102 million, up from $81 million in the year-ago quarter.
The Electrical or EIS segment’s revenues rose 8.9% year over year to $193 million. Operating profit, however, decreased to $13.5 million from $15.4 million in the year-ago quarter.
The S. P. Richards or Business Products segment’s revenues declined 2.2% to $467 million. Operating profit at the segment declined to $13.7million from $19.9 million recorded in the prior-year quarter.
Financial Position
Genuine Parts had cash and cash equivalents of $315 million as of Dec 31, 2017, up from $243 million as of Dec 31, 2016. Long-term debt increased to $2.6 billion as of Dec 31, 2017, from $550 million as of Dec 31, 2016.
In fourth-quarter 2017, capital expenditures decreased to $54.6 million from $74 million, in the year-ago period.
Dividend
The company reported that its board has approved a 7% increase in its quarterly cash dividend on common stock to 72 cents per share. The revised dividend will be paid on Apr 2 to shareholders of record as of Mar 9, 2017.
Guidance
For full-year 2018, Genuine Parts expects revenue growth rate in the range of 12-13%, whereas adjusted earnings per share are projected to be in the range of $5.6-$5.75. These anticipations include the benefits AAG’s full-year operations and roughly $80-$90 million in lower income taxes.
Zacks Rank & Other Key Picks
Genuine Parts has a Zacks Rank #2 (Buy). Other top-ranked stocks in the auto space are LKQ Corp. (LKQ - Free Report) , PACCAR Inc. (PCAR - Free Report) and AB Volvo (VLVLY - Free Report) . LKQ and PACCAR sport a Zacks Rank #1 (Strong Buy), while Volvo carries a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
LKQ Corp. has an expected long-term growth rate of 16%. In the last six months, shares of the company have jumped 22.6%.
PACCAR has an expected long-term growth rate of 10%. In the last six months, shares of the company have gained 8.7%.
Volvo has an expected long-term growth rate of 15%. Over a year, shares of the company have rallied 45.1%.
Can Hackers Put Money INTO Your Portfolio?
Earlier this month, credit bureau Equifax announced a massive data breach affecting 2 out of every 3 Americans. The cybersecurity industry is expanding quickly in response to this and similar events. But some stocks are better investments than others.
Zacks has just released Cybersecurity! An Investor’s Guide to help Zacks.com readers make the most of the $170 billion per year investment opportunity created by hackers and other threats. It reveals 4 stocks worth looking into right away.
Download the new report now>>