Advertisement
U.S. markets close in 4 hours 57 minutes
  • S&P 500

    5,252.02
    +3.53 (+0.07%)
     
  • Dow 30

    39,736.33
    -23.75 (-0.06%)
     
  • Nasdaq

    16,400.54
    +1.02 (+0.01%)
     
  • Russell 2000

    2,126.76
    +12.41 (+0.59%)
     
  • Crude Oil

    82.63
    +1.28 (+1.57%)
     
  • Gold

    2,234.90
    +22.20 (+1.00%)
     
  • Silver

    24.93
    +0.18 (+0.74%)
     
  • EUR/USD

    1.0800
    -0.0029 (-0.27%)
     
  • 10-Yr Bond

    4.1980
    +0.0020 (+0.05%)
     
  • GBP/USD

    1.2632
    -0.0006 (-0.05%)
     
  • USD/JPY

    151.2440
    -0.0020 (-0.00%)
     
  • Bitcoin USD

    71,486.43
    +1,538.27 (+2.20%)
     
  • CMC Crypto 200

    885.54
    0.00 (0.00%)
     
  • FTSE 100

    7,969.18
    +37.20 (+0.47%)
     
  • Nikkei 225

    40,168.07
    -594.66 (-1.46%)
     

Genuine Parts Profits In Line

Genuine Parts Company (GPC) reported an 11% rise in profits to $168.6 million in the second quarter of the year from $151.8 million in the year-ago quarter. Earnings per share went up 12.5% to $1.08 from 96 cents in the comparable quarter of 2011. It was in line with the Zacks Consensus Estimate.

Revenues in the quarter grew 5% to $3.3 billion, slightly lower than the Zacks Consensus Estimate of $3.4 billion. Operating profit also increased 4.5% to $705.0 million from $674.6 million a year ago, despite a 4% rise in selling, general and administrative expenses to $680.2 million during the quarter.

Revenues in the Automotive Parts segment grew 4% to $1.6 billion despite sluggish growth in the automotive aftermarket. Operating profit in the segment rose 10% to $153.0 million.

Revenues in the Motion Industries or Industrial segment increased 8% to $1.1 billion while operating profit improved 11% to $95.1 million.

Revenues in the Electrical segment or EIS appreciated 9% to $149.4 million while operating profit surged 41% to $12.9 million.

The company’s S. P. Richards or Office Products segment continues to face challenging conditions in the market. Revenues in the segment slipped 1% to $413.3 million while operating profit slid 2% to $30.6 million.

Genuine Parts had cash and cash equivalents of $171.6 million as of June 30, 2012, down from $516.7 million as of June 30, 2011. Long-term debt remained unchanged at $500 million as of June 30, 2012 compared with the year-ago level.

During the first six months of 2012, Genuine Parts’ net cash flow from operations improved to $421.3 million from $250.0 million in the prior-year period, due to higher profit and favorable changes in operating assets and liabilities. Meanwhile, capital expenditures increased to $51.4 million from $41.7 million in the first half of 2011.

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-line and bottom-line growth.

Its major competitors include Advance Auto Parts (AAP), AutoZone (AZO) and W.W. Grainger (GWW). Currently, the company retains a Zacks #2 Rank on its stock, which translates to a Buy rating for the short term (1–3 months).

Read the Full Research Report on GPC

Read the Full Research Report on AAP

Read the Full Research Report on GWW

Read the Full Research Report on AZO

Zacks Investment Research



More From Zacks.com

Advertisement