Genuine Parts Co. Earnings Cheat Sheet: Profit Rises by Double-Figures for Fifth Consecutive Quarter

S&P 500 (NYSE:SPY) component Genuine Parts Company (NYSE:GPC) reported its results for the third 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 Third Quarter

Results: Net income for the auto parts wholesaler rose to $151.8 million (97 cents per share) vs. $131.8 million (83 cents per share) in the same quarter a year earlier. This marks a rise of 15.2% from the year earlier quarter.

Revenue: Rose 11.4% to $3.29 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: GPC beat the mean analyst estimate of 95 cents per share. It beat the average revenue estimate of $3.2 billion.

Quoting Management: Thomas C. Gallagher, Chairman, President and Chief Executive Officer, commented, “We are pleased to report another period of record sales and earnings for Genuine Parts Company. The Automotive Group posted its fourth consecutive quarter of 9% sales growth. Automotive’s strong and consistent growth reflects the positive impact of our sales initiatives and the sound fundamentals that continue to be evident in the automotive aftermarket. Our Industrial and Electrical businesses once again produced 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 12.9%, with the biggest boost coming in the first quarter when revenue rose 14.3% from the year earlier quarter.

The company has now seen net income rise in three straight quarters. In the second quarter, net income rose 22% and in the first quarter, the figure rose 25.7%.

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

The company’s cost of sales rose 11.4% from a year earlier. Last quarter, cost of sales was 71.1% of revenue, similar to a year earlier.

Looking Forward: Analysts appear increasingly optimistic about the company’s results for the next quarter. The average estimate for the fourth quarter has moved up from 79 cents a share to 80 cents over the last ninety days. Over the past three months, the average estimate for the fiscal year has climbed from $3.47 per to share to $3.50.

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)