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Genuine Parts (GPC) Q3 Earnings and Sales Miss Expectations

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Genuine Parts Company (GPC - Free Report) , based in Atlanta, GA, distributes automotive and industrial replacement parts, office products and electrical/electronic materials in the U.S., Canada and Mexico. The company is poised to benefit from its various initiatives to boost sales and earnings, such as product line expansion, penetration into new markets and cost-saving activities. The company relies on a diverse product portfolio for top- and bottom-line growth. Further, Genuine Parts will benefit from the frequently undertaken acquisitions to expand its business.

However, Genuine Parts is facing challenges due to fragile economic conditions in some global markets. This is expected to have an adverse impact on segment results, primarily that of the non-automotive businesses. In addition, rising competition in the industries in which Genuine Parts operates poses a challenge for the company.

Estimate Trend & Surprise History

Investors should note that the third-quarter 2016 earnings estimate for Genuine Parts has been stationary over the past week and month. The Zacks Consensus Estimate has remained static at $1.29 over these periods.

The company has delivered positive earnings surprises. It has surpassed the Zacks Consensus Estimate in 3 of the trailing 4 quarters and missed in one of the quarters, leading to an average beat of around 2.32%. Thus investors are eagerly awaiting Genuine Parts latest earnings report.

GENUINE PARTS Price and EPS Surprise

 

GENUINE PARTS Price and EPS Surprise | GENUINE PARTS Quote

We have highlighted some of the key stats from this just-revealed announcement below:

Earnings

Genuine Parts’ earnings were $1.24 per share in the third quarter of 2016, same as that recorded in the year ago quarter. However, earnings per share missed the Zacks Consensus Estimate of $1.29.

Revenues

Genuine Parts reported revenues of $3.94 billion, up 0.5% year over year. Revenues also missed the Zacks Consensus Estimate of $4.04 billion.

Key Stats/Developments to Note

For 2016, annual revenue of Genuine Parts is expected to range between flat to up 1%, lower than the previous expectation of improvement of 1%–2%. Earnings per share in 2016 are expected to be in the range of $4.55–$4.60 compared to the previous forecast of $4.70 to $4.75.

Zacks Rank

Currently, Genuine Parts has a Zacks Rank #3 (Hold), but that could change following its earnings report which has just released.

Market Reaction

Genuine Parts' shares have fallen 1.4% to $95 in pre-market trading so far. Clearly, the initial reaction to the results is negative.

Check back later for our full write up on Genuine Parts’ earnings report!

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