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Genuine Parts (GPC) Q4 Earnings Top Estimates, Fall Y/Y

Genuine Parts CompanyGPC , 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 in the industries in which Genuine Parts operates poses a challenge for the company. Genuine Parts is also facing challenges in the non-automotive business.

Estimate Trend & Surprise History

Investors should note that the fourth-quarter 2016 earnings estimate for Genuine Parts has been stationary over the past week and month. The Zacks Consensus Estimate has remained static at $1.01 over these periods.

The company has a mixed record of earnings surprises. It has surpassed the Zacks Consensus Estimate in 2 of the trailing 4 quarters and missed in two of the quarters, leading to an average beat of around 1.15%. Thus investors are eagerly awaiting Genuine Parts latest earnings report.

Genuine Parts Company Price and EPS Surprise

Genuine Parts Company Price and EPS Surprise | Genuine Parts Company Quote

Zacks Rank

Genuine Parts currently has a Zacks Rank #3 (Hold), but that could change following its earnings report which was just released. We have highlighted some of the key stats from this earnings announcement below:

Earnings

Genuine Parts' earnings were $1.02 per share in the fourth quarter of 2016, lower than $1.07 recorded in the year ago quarter. However, earnings per share surpassed the Zacks Consensus Estimate of $1.01.

Revenues

Genuine Parts reported revenues of $3.78 billion, up 3% year over year. Revenues marginally surpassed the Zacks Consensus Estimate of $3.77 billion.

Key Stats/Developments to Note

For 2017, annual revenue of Genuine Parts is expected to increase 3% to 4%. Earnings per share in 2017 is expected to be in the range of $4.70-$4.80.

The board of directors of Genuine Parts increased dividend to $2.70 per share from $2.63 paid earlier. The company will pay the quarterly dividend of 67.5 cents on Apr 3, 2017 to shareholders as of Mar 10, 2017. With this, Genuine Parts has increased dividend for 61 consecutive years.

Market Reaction

Genuine Parts' shares have remained inactive so far 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!

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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