Genuine Parts Company ( GPC Quick Quote GPC - Free Report) reported third-quarter adjusted diluted earnings of $1.63 per share, surpassing the Zacks Consensus Estimate of $1.48. Markedly, higher-than-expected revenues from the Industrial Parts segment resulted in this outperformance. Revenues from this segment came in at $1,409 million, beating the Zacks Consensus Estimate of $1,367 million. Moreover, the bottom line came in higher than the year-ago quarter’s profit of $1.39 per share. This Atlanta-based automotive replacement parts supplier reported net sales of $4,370 million, missing the Zacks Consensus Estimate of $4,459 million. Moreover, the top-line figure comes in lower than the year-ago quarter’s $4525 million, marking a 3.4% decline year over year. This downside resulted from the 1.8% decline in comparable sales and a 4.2% impact from divestitures. These negatives were partially offset by a 1.3% benefit from acquisitions and a 1.3% net impact of foreign currency and other. Genuine Parts did not issue any guidance for 2020 amid the coronavirus crisis. Segmental Performance
The Automotive segment’s net sales, which have the highest contribution to the company’s revenues, totaled $2,960 million in the reported quarter, up 6% from the prior-year quarter’s $2,792.5 million. The segment’s comparable sales rose 2.2% during the third quarter. The segment’s operating profit increased to $266.1 million in the reported quarter from the year-ago quarter’s $222.6 million.
The Industrial Parts segment’s net sales dropped 18.6% from the year-ago quarter to $1,409.7 million. The segment’s comparable sales declined 9.2% during the reported period. Resultantly, operating profit fell to $125.6 million from the year-earlier quarter’s $137.5 million. Costs & Cash Position
Total operating expenses edged down 1.34% during the September-end quarter, primarily due to decline in selling, general and administrative (SG&A) expenses. SG&A expenses during third-quarter 2020 slid 3.01% to $1,140.2 million from the $1,175.7 million incurred in third-quarter 2019.
Genuine Parts had cash and cash equivalents worth $900.1 million as of Sep 30, 2020. Long-term debt decreased to $2,700.6 million from the $2,795.9 million recorded in the year-ago period. Zacks Rank & Other Stocks to Consider
Genuine Parts currently carries a Zacks Rank #2 (Buy). Shares of the company have declined 4%, year to date, while the
industry has witnessed a fall of 9.3%. Some other top-ranked stocks in the same industry are LKQ Corporation ( LKQ Quick Quote LKQ - Free Report) , Dorman Products ( DORM Quick Quote DORM - Free Report) and SPX Corporation (. Dorman Products and SPK Corporation currently carry a Zacks Rank of 2, while LKQ Corporation flaunts a Zacks Rank of 1 (Strong Buy), at present. You can see SPXC Quick Quote SPXC - Free Report) the complete list of today’s Zacks #1 Rank stocks here. Breakout Biotech Stocks with Triple-Digit Profit Potential
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