Genuine Parts Company GPC , based in Atlanta, GA, distributes automotive and industrial replacement parts, office products and electrical/electronic materials in the U.S., Canada and Mexico. The company is poised to benefit from its 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 growth. Further, Genuine Parts will benefit from the frequently undertaken acquisitions to expand its business.
However, rising competition is highly challenging for the company. Moreover, unfavorable economic conditions, including low economic growth and high unemployment have adversely affected the credit markets, consumer and business confidence, and commodity prices, creating challenges for Genuine Parts.
Estimate Trend & Surprise History
Investors should note that the third-quarter earnings estimate for Genuine Parts has decreased by a penny to $1.23 over the past week.
The company has delivered disappointing earnings surprises. It has missed the Zacks Consensus Estimate in one of the trailing 4 quarters and reported breakeven results in another two of the trailing 4 quarters with an average miss of around 0.56%. Thus investors are eagerly awaiting Genuine Parts latest earnings report.
We have highlighted some of the key stats from this just-revealed announcement below:
Genuine Parts' earnings were $1.24 per share in the third quarter of 2015, which was in-line with the figure recorded in the year ago quarter. Earnings per share surpassed the Zacks Consensus Estimate of $1.23. The improvement in earnings was supported by solid Automotive distribution business results and better sales in the Office and Electrical distribution businesses, partially offset by foreign currency headwinds and challenging global economic conditions.
Genuine Parts reported revenues of $3.92 billion, down 2% year over year. Revenues also missed the Zacks Consensus Estimate of $4 billion.
Key Stats/Developments to Note
Genuine Parts expects to face challenges in the Industrial and Electrical businesses in the fourth quarter of 2015. This will adversely affect the overall earnings and revenue of the company.
Currently, Genuine Parts has a Zacks Rank #4 (Sell), but that could change following its earnings report which has just released.
Genuine Parts' shares were inactive following the release. It would be interesting to see how the market reacts to the results during the trading session today.
Check back later for our full write up on Genuine Parts' earnings report!
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.