Genuine Parts Q1 EPS Beat Street Estimations

Genuine Parts Company GPC reported 1.8 percent fall in first quarter net income to $158 million from $161 million in the year-ago quarter. However, its earnings per share of $1.05 remained flat with the last year period, and came in $0.02 above the Street analysts' expectations.

Genuine Parts' sales for the quarter also fell 0.5 percent due to 1.5 percent currency headwind that was partly offset by acquisitions. Its sales of $3.72 billion versus $3.74 billion in the previous quarter were in line with the expectations.

The company's Chairman and CEO, Tom Gallagher, commented, "We are pleased to report that our first quarter performance was in-line with our expectations. Our growth initiatives for the automotive business along with consistently strong industry fundamentals continue to drive our positive automotive performance. Our non-automotive businesses continue to operate in a difficult economic environment."

Genuine Parts said sales for the Automotive Group were up 2 percent, which consisted of an approximate 3.5 percent core sales increase, a 1 percent gain from acquisitions, and a reduction of 2.5 percent from currency translation. The company added that Sales at Motion Industries were down 2.5 percent.

The CEO concluded, "Despite the fragile industrial economic conditions which continue to pressure our near term growth outlook, our teams remain focused on key sales and cost initiatives necessary to drive long term growth for the Company. We will continue to support our sales and earnings growth with a strong balance sheet, solid cash flows and effective capital allocation intended to maximize shareholder value."

Shares of the company closed at $99.83 on Monday.

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Posted In: EarningsNews
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