Genuine Parts Company
) reached 52-week high of $78.12 on Mar 28. Shares of the company
have been escalating following its impressive fourth quarter
results, increase in dividend payment and recent acquisition of
Exego Group - a leading aftermarket distributor of automotive
replacement parts and accessories in Australasia.
GENUINE PARTS (GPC): Free Stock Analysis
DOUGLAS DYNAMIC (PLOW): Free Stock Analysis
STANDARD MOTOR (SMP): Free Stock Analysis
VISTEON CORP (VC): Free Stock Analysis Report
To read this article on Zacks.com click here.
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. It
has a market cap of $12.1 billion.
Genuine Parts revealed a 19.8% rise in earnings to $1.03 per
share in the fourth quarter of 2012 from 86 cents in the
corresponding quarter of 2011, beating the Zacks Consensus
Estimate by 10 cents. Net income increased 18.7% to $160.2
million from $135.0 million in 2011.
Revenues went up 3.5% to $3.1 billion, which compared with the
Zacks Consensus Estimate of $3.2 billion. The increase in
revenues was driven by respectable sales growth in three of the
company's four businesses.
Genuine Parts also announced an increase in its annual dividend
payment, making 2013 the 57th consecutive year of increased
dividends paid to shareholders. The company's Board of Directors
announced an 8.6% increase in cash dividend to an annual rate of
$2.15 per share compared with the previous dividend of $1.98 per
Last month, Genuine Parts revealed that it will acquire the
remaining 70% stake of Exego Group for $800 million that includes
the assumption of certain debt. On Jan 1, 2012, Genuine Parts
Company acquired a 30% stake in Exego and held the option to
acquire the remaining shares of the company later.
Formed in 1922 and headquartered in Melbourne, Australia, Exego
Group has annual revenues of more than $1 billion. It owns stores
at more than 430 locations across Australia and New Zealand.
Genuine Parts Company believes the acquisition will help the
company enjoy significant growth opportunities in the
Currently, Genuine Parts Company retains a Zacks Rank #2 (Buy).
Apart from Genuine Parts, other stocks from the same industry
that warrant a look include
Douglas Dynamics, Inc.
Standard Motor Products Inc.
). Visteon carries a Zacks Rank #1 (Strong Buy) while the
remaining two stocks carry a Zacks Rank #2 (Buy).