UPDATE: Goldman Sachs Lowers PT on Genuine Parts Company on Weaker 1Q Results

In a report published Monday, Goldman Sachs analyst Matthew J. Fassler reiterated a Sell rating on Genuine Parts Company GPC, but lowered the price target from $74.00 to $72.00. In the report, Fassler noted, “GPC's 1Q results surprised us – and the Street – to the downside, as sales fell short of expectations across the board, driving an earnings miss. GPC reported 1Q13 EPS of $0.93 (down 0.6%) vs. $0.93 a year-ago, the first decline in EPS since 4Q09. Results fell short of our $1.00 and the Street's $0.99. We had feared the impact of a slowdown in the industrial sector coupled with a lack of recovery in automotive, but office supply and electrical also decelerated meaningfully. A day-count shift in the quarter accounted for approximately 1.6% of the slowdown, but sales were still fell short after adjusting for this item. A slowdown in March apparently impeded results after a better start. Also, a lower tax rate y/y added $0.02 to 1Q13 results; we did not expect the tax rate to reach 35% before the integration of Exego (lower Australia/New Zealand tax rates).” Genuine Parts Company closed on Friday at $73.66.