Genuine Parts Company
) reported a 14.4% rise in earnings per share to $1.11 in the
third quarter of the year from 97 cents in the same quarter of
2011. However, it lagged the Zacks Consensus Estimate by a penny.
Total profit grew 13.9% to $172.9 million from $151.8 million a
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Revenues in the quarter inched up 2.7% (4.0% based on comparable
store sales) to $3.4 billion, missing the Zacks Consensus
Estimate of $3.5 billion. Operating profit also grew 0.4% or $3.1
million to $704.5 million from $701.4 million a year ago, driven
by a 0.2% or $1.1 million fall in selling, general and
administrative expenses to $678.9 million during the quarter.
Revenues in the
rose 2.5% (4.0% based on comparable store sales) to $1.7 billion,
while operating profits went up 6.7% to $150.6 million. Revenues
or Motion Industries escalated 4.5% (6.0% based on comparable
store sales) to $1.1 billion. However, operating profits in the
segment dipped 2.6% to $94.6 million.
Revenues in the
or EIS increased 5.3% (7.0% based on comparable store sales) to
$150.9 million during the quarter while operating profits grew
impressively by 21.7% to $13.6 million.
Office Products Group
or S. P. Richards continues to face challenging conditions.
Revenues in the segment slipped 0.7% (1.0% based on comparable
store sales) to $444.3 million. However, operating profits rose
10.1% to $29.9 million during the quarter.
Genuine Parts had cash and cash equivalents of $398.1 million as
of September 30, 2012, down from $534.8 million as of September
30, 2011. Long-term debt remained unchanged at $500 million as of
September 30, 2012 compared with the same as of September 30,
During the first nine months of 2012, Genuine Parts' net cash
flow from operations improved significantly by 53.8% to $764.8
million from $497.4 million in the prior-year quarter, due to
higher profits and favorable changes in operating assets and
liabilities. Meanwhile, capital expenditures increased to $71.6
million from $63.9 million in the corresponding period of 2011.
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.
Its major competitors include
Advance Auto Parts Inc.
Standard Motor Products Inc.
). Currently, the company retains a Zacks #4 Rank on its stock,
which translates to a Sell rating for the short term (1-3