Genuine Parts Maintain Full Year Sales Outlook After Missing 2Q

Genuine Parts Company

said that it maintained its full year sales guidance for the current year. The reiteration came on the back of its second quarter earnings and sales missing the Street analysts' estimations. However, the company reduced its top end of its earlier earnings forecast. As a result, the stock traded down on Tuesday. Genuine Parts Company reported net income of $191.37 million, down 2.1 percent from $195.37 million while earnings per share remained flat at $1.28. This was lower than the Street analysts' expectations of $1.30 a share. Its top line fell one percent to $3.899 billion from $3.94 billion in the previous year quarter. Street expected $4.01 billion revenue. The company's president and CEO, Paul Donahue, said, "Total sales in the second quarter were down 1% from the prior year, inclusive of a 2% contribution from acquisitions less a currency headwind of 1%. Sales for the Automotive Group were down 0.7%, consisting of a 1% core sales decline, a 1.5% currency headwind and an approximate 2% contribution from acquisitions." He added, "Sales at Motion Industries, our Industrial Group, were down 1.7%, including a 3% underlying sales decrease and an approximate 0.5% currency headwind, offset by a 2% benefit from acquisitions. Sales at EIS, our Electrical/Electronic Group, were down approximately 5%, including a 1% negative impact of copper pricing. Sales for S. P. Richards, our Office Products Group, were up 1%, consisting of a 5% contribution from acquisitions offset by a 4% underlying sales decrease." Going forward, the Company said that it was maintaining its outlook of 1 - 2 percent total sales growth and expects earnings per share to be $4.70 - $4.75 compared to its earlier projection of $4.70 to $4.80. Following this, the stock traded 1.19 percent down on Tuesday.