Genuine Parts Co. Earnings Cheat Sheet: Profit Rises by Double-Figures Again

S&P 500 (NYSE:SPY) component Genuine Parts Company (NYSE:GPC) reported net income above Wall Street’s expectations for the second 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 Second Quarter

Results: Net income for Genuine Parts Company rose to $151.8 million (96 cents per share) vs. $124.5 million (78 cents per share) in the same quarter a year earlier. This marks a rise of 22% from the year earlier quarter.

Revenue: Rose 11.9% to $3.18 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: GPC beat the mean analyst estimate of 89 cents per share. It beat the average revenue estimate of $3.11 billion.

Quoting Management: In reviewing the quarter, Mr. Gallagher commented, “We are especially pleased to report record sales and earnings for the second quarter. The Automotive Group produced another period of solid growth, with sales up 9% for the third consecutive quarter. We remain encouraged by the ongoing positive impact of our sales initiatives and the sound fundamentals of the aftermarket. Our Industrial and Electrical businesses continue to produce the strongest growth among our four business segments.”

Key Stats:

The company has enjoyed double-digit year-over-year percentage revenue growth for the past five quarters. Over that span, the company has averaged growth of 13.1%, with the biggest boost coming in the first quarter when revenue rose 14.3% from the year earlier quarter.

Last quarter marked the fifth straight quarter that the company saw shrinking gross margins as gross margin fell 0.1 percentage point to 28.8% from the year earlier quarter. Over that time, margins have contracted on average 0.7 percentage point per quarter on a year-over-year basis.

The company has now seen net income rise in three straight quarters. In the first quarter, net income rose 25.7% and in the fourth quarter of the last fiscal year, the figure rose 19.6%.

The company has now topped analyst estimates for the last four quarters. It beat the mark by 4 cents in the first quarter, by 5 cents in the fourth quarter of the last fiscal year, and by 7 cents in the third quarter of the last fiscal year.

Competitors to Watch: LKQ Corporation (NASDAQ:LKQX), Lithia Motors, Inc. (NYSE:LAD), Dorman Products Inc. (NASDAQ:DORM), Advance Auto Parts, Inc. (NYSE:AAP), O’Reilly Automotive, Inc. (NASDAQ:ORLY), The Pep Boys – Manny, Moe & Jack (NYSE:PBY), U.S. Auto Parts Network, Inc. (NASDAQ:PRTS), General Motors Company (NYSE:GM), Toyota Motor Corp. (NYSE:TM), Honda Motor CO., Ltd. (NYSE:HMC), Ford Motor Company (NYSE:F), CarMax (NYSE:KMX), Tesla Motors Inc (NASDAQ:TSLA), Tata Motors Limited (NYSE:TTM) and Navistar Intl. Corp. (NYSE:NAV).

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(Source: Xignite Financials)