On Aug 22, 2014, we issued an updated research report on
Genuine Parts Company
). This Zacks Rank #2 (Buy) stock reported a 2.4% positive earnings
surprise in the last reported quarter.
Genuine Parts reported earnings of $1.28 per share in the second
quarter of 2014, exceeding the Zacks Consensus Estimate by 3 cents.
Earnings were up 9.4% from adjusted earnings of $1.17 in the
comparable quarter of the previous year.
Genuine Parts has undertaken various initiatives to boost sales and
earnings, such as product line expansion, penetration into new
markets and implementation of cost-saving strategies. The company
relies on a diverse product portfolio for top and bottom-line
growth. In the Automotive Parts segment, the company expects demand
to remain strong as the average age of vehicles on the road has
risen to over 11 years.
Genuine Parts frequently undertakes acquisitions to expand
business. The buyout of Impact Products, LLC in Jul 2014 is
expected to generate annual revenues of around $85 million.
Notably, Genuine Parts is expected to record revenues to the tune
of $255 million from its recent takeovers.
Further, Genuine Parts consistently enhances shareholders' value
through buybacks and dividend payouts. Banking on its strong
capital position, in the first half of 2014, the company
repurchased approximately 635,000 shares. Also, it has about 10
million shares authorized and available for repurchase. Meanwhile,
Genuine Parts raised its quarterly dividend for the 58th
consecutive year in Feb 2014.
On the flip side, headwinds like intensifying competition and
macroeconomic uncertainties pose considerable threats. Moreover,
sluggishness in the Industrial and Office Products segments spells
challenge for Genuine Parts.
Other Stocks to Consider
Investors interested in automobile stocks could also consider Tesla
Motors, Inc. (
), Fox Factory Holding Corp (
) and Visteon Corporation (
). While Tesla and Visteon Corporation sport a Zacks Rank #1
(Strong Buy), Fox Factory carries a Zacks Rank #2.
Want the latest recommendations from Zacks Investment Research?
Today, you can download 7 Best Stocks for the Next 30 Days.
Click to get this free report
GENUINE PARTS (GPC): Free Stock Analysis Report
VISTEON CORP (VC): Free Stock Analysis Report
TESLA MOTORS (TSLA): Free Stock Analysis Report
FOX FACTORY HLD (FOXF): Free Stock Analysis
To read this article on Zacks.com click here.