Genuine Parts Company Disappoints in 1Q - Analyst Blog
19 4월 2013 - 9:33PM
Zacks
Genuine Parts Company (GPC) posted earnings per
share of 93 cents for the first quarter of 2013, which were flat
compared with the year-ago level. With this, earnings also missed
the Zacks Consensus Estimate by 6 cents per share.
Sales in the quarter grew marginally by 0.6% to $3.2 billion, which
was lower than the Zacks Consensus Estimate of $3.3 billion. The
marginal rise was mainly attributable to poor sales in the
company’s Industrial, Electrical, and Office Products segments,
slightly more than offset by improvements in the Automotive
segment.
Sales in the Automotive segment grew 3.4% to $1.5 billion. The
growth was mainly attributable to commercial growth and favorable
impact of the Quaker City acquisition.
Sales in the Motion Industries or Industrial segment inched down
1.7% to $1.1 billion, sales in the S. P. Richards or Office
Products segment declined 1.4% to $420.1 million while sales in the
EIS or Electrical segment dipped 5.4% to $139.2 million.
Genuine Parts had cash and cash equivalents of $841.9 million as of
Mar 31, 2013, nearly doubled from $424.4 million as of Mar 31,
2012. Long-term debt increased significantly to $914.7 million as
of Mar 31, 2013 from $500.0 million as of Mar 31, 2012.
Consequently, long-term debt-to-capitalization ratio deteriorated
to 23.0% from 14.9% at the end of 2012-first quarter.
In the quarter, the company’s net cash flow from operations
declined to $116.4 million from $172.3 million in the prior-year,
due to lower profits and unfavorable changes in operating assets
and liabilities. Meanwhile, capital expenditures decreased to $12.9
million from $16.9 million in the first quarter of 2012.
Genuine Parts has undertaken 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-line and bottom-line growth.
Despite a slow start in the quarter, the company expects to report
strong sales and earnings for the remainder of the year. Genuine
Parts is particularly hopeful about its recent acquisition of 70%
stake of Exego Group – a leading aftermarket distributor of
automotive replacement parts and accessories in Australasia.
Currently, shares of Genuine Parts retain a Zacks Rank #1, which
translates to a Strong Buy rating for the short term (1–3 months).
Other stocks from the same industry that worth a look are
Douglas Dynamics, Inc. (PLOW), Standard
Motor Products Inc. (SMP) and Delphi Automotive
PLC (DLPH). All of them carry a Zacks Rank #2 (Buy).
DELPHI AUTO PLC (DLPH): Free Stock Analysis Report
GENUINE PARTS (GPC): Free Stock Analysis Report
DOUGLAS DYNAMIC (PLOW): Free Stock Analysis Report
STANDARD MOTOR (SMP): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
Genuine Parts (NYSE:GPC)
과거 데이터 주식 차트
부터 6월(6) 2024 으로 7월(7) 2024
Genuine Parts (NYSE:GPC)
과거 데이터 주식 차트
부터 7월(7) 2023 으로 7월(7) 2024