On Mar 12, 2014, we issued an updated research report on
Genuine Parts Company
). The company has positive factors like improving earnings,
rising cash flow, benefits from acquisitions and efficient
capital deployment. However, headwinds include sluggish demand in
the Industrial and Office Products segments, rising competition
and uncertainty in the macro environment.
Genuine Parts Company's earnings per share increased 4.3% year
over year to 97 cents in the fourth quarter of 2013 from 93 cents
reported in the year-ago quarter (including a one-time pension
gain of 10 cents per share). Earnings surpassed the Zacks
Consensus Estimate of 92 cents per share.
Revenues in the quarter grew 12.8% to $3.5 billion, in line
with the Zacks Consensus Estimate. The year-over-year improvement
in revenues can be attributed to benefits from acquisitions,
partially offset by headwinds from currency translations.
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- and bottom-line
However, weak customer demand in the equipment and machinery
business offset the growth in food products, automotive, pulp and
paper as well as lumber and wood products businesses in the
Industrial segment. Demand in the Office Products segment fell in
2013 due to high unemployment and increasing digitization of
offices, which reduced demand for paper-based office
Genuine Parts reported positive earnings surprises in two of
the trailing four quarters with an average beat of 1.61%. The
Zacks Consensus estimate for the company's 2014 earnings is $4.57
per share, up 3.78% over 2013.
Genuine Parts Company is a prominent player in the automotive
replacement parts industry with a Zacks Rank #3 (Hold). Some
better-ranked stocks worth considering in the automotive
replacement industry are
Remy International, Inc.
Motorcar Parts of America Inc.
). Remy and Motorcar Parts sport a Zacks Rank #1 (Strong Buy)
while LKQ carries a Zacks Rank #2 (Buy).
GENUINE PARTS (GPC): Free Stock Analysis
LKQ CORP (LKQ): Free Stock Analysis Report
MOTORCAR PARTS (MPAA): Free Stock Analysis
REMY INTL INC (REMY): Get Free Report
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