Back to top

Analyst Blog

Genuine Parts Company (GPC - Analyst Report) revealed that it will acquire the remaining 70% stake of Exego Group – a leading aftermarket distributor of automotive replacement parts and accessories in Australasia – for $800 million, including the assumption of certain debt.

On Jan 1, 2012, Genuine Parts Company acquired a 30% stake in Exego and held the option to acquire the remaining shares of the company later. The company will purchase the remaining stake using a combination of cash and debt. The transaction is expected to close on Apr 1, 2013.

Formed in 1922 and headquartered in Melbourne, Australia, Exego Group has annual revenues of more than $1 billion. It owns stores at more than 430 locations across Australia and New Zealand. Genuine Parts Company believes the acquisition will help the company enjoy significant growth opportunities in the Australasian aftermarket.  

Genuine Parts Company, a Zacks Rank #3 (Hold) stock, posted a 19.8% rise in earnings to $1.03 per share in the fourth quarter of 2012 from 86 cents in the corresponding quarter of 2011, beating the Zacks Consensus Estimate by 10 cents. Net income increased 18.7% to $160.2 million from $135.0 million in 2011.

Revenues went up 3.5% to $3.1 billion, which compared with the Zacks Consensus Estimate of $3.2 billion. The revenue increase was driven by a respectable sales growth in three of the company’s four businesses.

Few stocks that are performing well in the industry where Genuine Parts operates include STRATTEC Security Corporation (STRT - Snapshot Report), Gentherm Incorporated (THRM - Snapshot Report) and Standard Motor Products Inc. (SMP - Analyst Report). Gentherm and STRATTEC Security are Zacks Rank #1 (Strong Buy) stocks while Standard Motor Products carries a Zacks Rank #2 (Buy).

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
UNITED THER… UTHR 117.83 +28.51%
TRIQUINT SE… TQNT 20.67 +6.52%
VASCO DATA… VDSI 14.77 +4.68%
BANCO DO BR… BDORY 15.53 +3.95%
STRATTEC SE… STRT 80.24 +3.00%