Genuine Parts Company (GPC - Free Report) reported adjusted earnings of 92 cents per share in first-quarter 2020, missing the Zacks Consensus Estimate of $1.12. The bottom line also declined from the year-ago profit of $1.28 a share. Weak contribution across all segments resulted in this underperformance.
Genuine Parts reported net sales of $4.56 billion, missing the Zacks Consensus Estimate of $4.61 billion. The top line also decreased 3.8% year over year. Net sales included contribution of 5.3% from prior-year acquisitions, offset by a 3.5% comparable sales decrease, a 0.9% negative impact from foreign-currency translation and a 4.8% impact due to the divestiture of certain businesses.
Genuine Parts Company Price, Consensus and EPS Surprise
Segmental Results
The Automotive segment’s net sales came in at $2.58 billion, down 1.6% year over year. The segment’s comparable sales declined 5% during the first quarter. The segment’s operating profit decreased to $142.3 million in the reported quarter from the prior year’s $179.2 million.
The Industrial Parts segment’s net sales slid 7.7% from the year-ago quarter to $1.51 billion. The segment’s comparable sales declined 3.1%. Resultantly, operating profit decreased to $113.9 million from the year-earlier quarter’s $121 million.
The Business Products segment’s net sales fell to $468 million from the prior-year quarter’s $479.1 million recorded. The segment’s comparable sales inched up 1.5%. Operating profit of the segment fell to $20.2 million from the $21.2 million recorded in the prior-year period.
Financial Position
Genuine Parts had cash and cash equivalents of $354.5 million as of Mar 31, 2020, down from $356.9 million in the corresponding period of 2019. As of Mar 31, 2020, its long-term debt increased to $2.73 billion from the $2.39 billion witnessed in the year-ago period. The company’s long-term debt-to-capital ratio was 44.3% as of Mar 31, 2020.
Genuine Parts returned $207 million to shareholders during the March-end quarter, including $111 million in the form of quarterly dividends and $96 million in share repurchases. However, the company suspended its existing share-repurchase program until further notice amid the coronavirus crisis.
2020 Outlook
Genuine Parts scrapped the full-year 2020 guidance as it expects that the pandemic’s impact will strain the company’s operations in the days to come.
Zacks Rank & Stocks to Consider
Genuine Parts currently carries a Zacks Rank of 4 (Sell).
Some better-ranked stocks in the same sector are Veoneer, Inc. , Unique Fabricating, Inc. and Modine Manufacturing Company (MOD - Free Report) , each carrying a Zacks Rank of 2 (Buy), at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Genuine Parts Company (GPC - Free Report) reported adjusted earnings of 92 cents per share in first-quarter 2020, missing the Zacks Consensus Estimate of $1.12. The bottom line also declined from the year-ago profit of $1.28 a share. Weak contribution across all segments resulted in this underperformance.
Genuine Parts reported net sales of $4.56 billion, missing the Zacks Consensus Estimate of $4.61 billion. The top line also decreased 3.8% year over year. Net sales included contribution of 5.3% from prior-year acquisitions, offset by a 3.5% comparable sales decrease, a 0.9% negative impact from foreign-currency translation and a 4.8% impact due to the divestiture of certain businesses.
Genuine Parts Company Price, Consensus and EPS Surprise
Segmental Results
The Automotive segment’s net sales came in at $2.58 billion, down 1.6% year over year. The segment’s comparable sales declined 5% during the first quarter. The segment’s operating profit decreased to $142.3 million in the reported quarter from the prior year’s $179.2 million.
The Industrial Parts segment’s net sales slid 7.7% from the year-ago quarter to $1.51 billion. The segment’s comparable sales declined 3.1%. Resultantly, operating profit decreased to $113.9 million from the year-earlier quarter’s $121 million.
The Business Products segment’s net sales fell to $468 million from the prior-year quarter’s $479.1 million recorded. The segment’s comparable sales inched up 1.5%. Operating profit of the segment fell to $20.2 million from the $21.2 million recorded in the prior-year period.
Financial Position
Genuine Parts had cash and cash equivalents of $354.5 million as of Mar 31, 2020, down from $356.9 million in the corresponding period of 2019. As of Mar 31, 2020, its long-term debt increased to $2.73 billion from the $2.39 billion witnessed in the year-ago period. The company’s long-term debt-to-capital ratio was 44.3% as of Mar 31, 2020.
Genuine Parts returned $207 million to shareholders during the March-end quarter, including $111 million in the form of quarterly dividends and $96 million in share repurchases. However, the company suspended its existing share-repurchase program until further notice amid the coronavirus crisis.
2020 Outlook
Genuine Parts scrapped the full-year 2020 guidance as it expects that the pandemic’s impact will strain the company’s operations in the days to come.
Zacks Rank & Stocks to Consider
Genuine Parts currently carries a Zacks Rank of 4 (Sell).
Some better-ranked stocks in the same sector are Veoneer, Inc. , Unique Fabricating, Inc. and Modine Manufacturing Company (MOD - Free Report) , each carrying a Zacks Rank of 2 (Buy), at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2019, while the S&P 500 gained and impressive +53.6%, five of our strategies returned +65.8%, +97.1%, +118.0%, +175.7% and even +186.7%.
This outperformance has not just been a recent phenomenon. From 2000 – 2019, while the S&P averaged +6.0% per year, our top strategies averaged up to +54.7% per year.
See their latest picks free >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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