S&P 500 component Genuine Parts Company reported its results for the fourth quarter. Genuine Parts Company distributes automotive replacement parts, industrial replacement parts, office products and electrical/electronic materials.
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Genuine Parts Company Earnings Cheat Sheet for the Fourth Quarter
Results: Net income for the auto parts wholesaler rose to $135 million (86 cents per share) vs. $118.7 million (75 cents per share) in the same quarter a year earlier. This marks a rise of 13.7% from the year-earlier quarter.
Revenue: Rose 7.4% to $3.01 billion from the year-earlier quarter.
Actual vs. Wall St. Expectations: Genuine Parts Company beat the mean analyst estimate of 83 cents per share. Analysts were expecting revenue of $3.05 billion.
Quoting Management: Mr. Gallagher stated, “Genuine Parts Company had another excellent year in 2011, highlighted by double-digit sales and earnings growth and record sales and earnings per share for the second consecutive year. We further strengthened our financial condition with increased net income, an expanded operating margin and a continued emphasis on effectively managing the balance sheet. We are very proud of the job that was done throughout our organization.”
Key Stats:
The company has now seen its net income increase for three consecutive quarters. In the third quarter, net income rose 15.2% and in the second quarter, the figure rose 22%.
The company has now topped analyst estimates for the last four quarters. It beat the mark by 2 cents in the third quarter, by 7 cents in the second quarter, and by 4 cents in the first quarter.
Revenue has increased for four quarters in a row. Revenue increased 11.4% to $3.29 billion in the third quarter. The figure rose 11.9% in the second quarter from the year earlier and climbed 14.3% in the first quarter from the year-ago quarter.
Gross margins went up 0.5 percentage point to 29.6%. This growth seemed to be driven by an increase in revenue, as the figure rose 7.4% from the year-earlier quarter, while costs rose 6.6%.
Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past month, the average estimate for the first quarter of the next fiscal year has gone up from 85 cents per share to 87 cents. The average estimate for the fiscal year has seen a bump from $3.55 per share sixty days ago to $3.56.
(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)
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To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com
To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com
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