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Genuine Parts (GPC) Q1 Earnings Miss Estimates, Rise Y/Y
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Genuine Parts Company (GPC - Free Report) has reported adjusted earnings of $1.28 per share in first-quarter 2019 compared with $1.27 in the prior-year quarter. The bottom line missed the Zacks Consensus Estimate of $1.31. During the reported quarter, it witnessed positive comps across three business segments.
The company recorded net income of $160.3 million in first-quarter 2019, down from $176.6 million in the prior-year quarter.
Genuine Parts reported net sales of $4.74 billion, up 3.3% year over year. The figure missed the Zacks Consensus Estimate of $4.8 billion. Net sales included 3.3% comparable growth, roughly 2% from acquisitions, partly offset by 2% adverse impact of foreign currency translation.
Genuine Parts Company Price, Consensus and EPS Surprise
Operating profit increased to $321 million from $318.5 million in first-quarter 2018. Selling, administrative and other expenses rose to $1.2 billion from $1.1 billion a year ago.
Segmental Results
The Automotive segment’s net sales improved to $2.62 billion from the year-ago figure of $2.56 billion. However, the segment’s operating profit plunged to $179.2 million in the reported quarter from $184.7 million a year ago.
The Industrial Parts segment’s net sales rose to $1.64 billion from $1.55 billion in the year-ago quarter. Moreover, operating profit increased to $121 million from $112 million in the year-ago quarter.
The Business Products segment’s net sales rose to $479 million from $474.1 million recorded in the prior-year quarter. Operating profit for the segment declined to $21.2 million from $21.6 million recorded in the prior-year quarter.
Financial Position
Genuine Parts had cash and cash equivalents of $356.9 million as of Mar 31, 2019, up from $326 million as of Mar 31, 2018. As of Mar 31, 2019, long-term debt decreased to $2.4 billion from $2.6 billion as of Mar 31, 2018.
Guidance
Genuine Parts reiterated its projection for 2019. The company expects sales to rise 3-4% and adjusted earnings per share to be $5.81-$5.96.
Volvo has an expected long-term growth rate of 5%. The stock has gained 15.9% in the past three months.
PACCAR has an expected long-term growth rate of 8.4%. The stock has gained 12.9% in the past three months.
Magna has an expected long-term growth rate of 6%. Over the past three months, shares of the company have gained 9.6%.
Zacks' Top 10 Stocks for 2019
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-holds for the year?
Who wouldn't? Our annual Top 10s have beaten the market with amazing regularity. In 2018, while the market dropped -5.2%, the portfolio scored well into double-digits overall with individual stocks rising as high as +61.5%. And from 2012-2017, while the market boomed +126.3, Zacks' Top 10s reached an even more sensational +181.9%.
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Genuine Parts (GPC) Q1 Earnings Miss Estimates, Rise Y/Y
Genuine Parts Company (GPC - Free Report) has reported adjusted earnings of $1.28 per share in first-quarter 2019 compared with $1.27 in the prior-year quarter. The bottom line missed the Zacks Consensus Estimate of $1.31. During the reported quarter, it witnessed positive comps across three business segments.
The company recorded net income of $160.3 million in first-quarter 2019, down from $176.6 million in the prior-year quarter.
Genuine Parts reported net sales of $4.74 billion, up 3.3% year over year. The figure missed the Zacks Consensus Estimate of $4.8 billion. Net sales included 3.3% comparable growth, roughly 2% from acquisitions, partly offset by 2% adverse impact of foreign currency translation.
Genuine Parts Company Price, Consensus and EPS Surprise
Genuine Parts Company Price, Consensus and EPS Surprise | Genuine Parts Company Quote
Operating profit increased to $321 million from $318.5 million in first-quarter 2018. Selling, administrative and other expenses rose to $1.2 billion from $1.1 billion a year ago.
Segmental Results
The Automotive segment’s net sales improved to $2.62 billion from the year-ago figure of $2.56 billion. However, the segment’s operating profit plunged to $179.2 million in the reported quarter from $184.7 million a year ago.
The Industrial Parts segment’s net sales rose to $1.64 billion from $1.55 billion in the year-ago quarter. Moreover, operating profit increased to $121 million from $112 million in the year-ago quarter.
The Business Products segment’s net sales rose to $479 million from $474.1 million recorded in the prior-year quarter. Operating profit for the segment declined to $21.2 million from $21.6 million recorded in the prior-year quarter.
Financial Position
Genuine Parts had cash and cash equivalents of $356.9 million as of Mar 31, 2019, up from $326 million as of Mar 31, 2018. As of Mar 31, 2019, long-term debt decreased to $2.4 billion from $2.6 billion as of Mar 31, 2018.
Guidance
Genuine Parts reiterated its projection for 2019. The company expects sales to rise 3-4% and adjusted earnings per share to be $5.81-$5.96.
Zacks Rank & Stocks to Consider
Genuine Parts currently carries a Zacks Rank #3 (Hold). A few better-ranked stocks in the broader auto sector are AB Volvo (VLVLY - Free Report) , PACCAR Inc. (PCAR - Free Report) and Magna International Inc. (MGA - Free Report) , each currently carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Volvo has an expected long-term growth rate of 5%. The stock has gained 15.9% in the past three months.
PACCAR has an expected long-term growth rate of 8.4%. The stock has gained 12.9% in the past three months.
Magna has an expected long-term growth rate of 6%. Over the past three months, shares of the company have gained 9.6%.
Zacks' Top 10 Stocks for 2019
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-holds for the year?
Who wouldn't? Our annual Top 10s have beaten the market with amazing regularity. In 2018, while the market dropped -5.2%, the portfolio scored well into double-digits overall with individual stocks rising as high as +61.5%. And from 2012-2017, while the market boomed +126.3, Zacks' Top 10s reached an even more sensational +181.9%.
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