Genuine Parts Earnings: Here’s Why the Stock is Falling Now

Genuine Parts Company (NYSE:GPC) delivered a profit and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 2.54%.

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Genuine Parts Company Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 0% to $0.93 in the quarter versus EPS of $0.93 in the year-earlier quarter.

Revenue: Rose 0.56% to $3.2 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Genuine Parts Company reported adjusted EPS income of $0.93 per share. By that measure, the company missed the mean analyst estimate of $0.99. It missed the average revenue estimate of $3.29 billion.

Quoting Management: Thomas C. Gallagher, Chairman and Chief Executive Officer, stated, “Entering 2013, we felt that the first quarter of the year would be our most challenging. Our earnings for the quarter are a direct reflection of the 0.6% sales increase. Among our segments, the Automotive Group reported a 3% sales increase, driven by our commercial growth and the positive impact of the Quaker City acquisition. Motion Industries, our Industrial Group, was down 2% in the quarter; and EIS, our Electrical/Electronic Group, was down 5%. S.P. Richards, our Office Products Group, reported a 1% decrease in sales for the quarter.”

Key Stats (on next page)…

Revenue increased 2.57% from $3.12 billion in the previous quarter. EPS decreased 9.71% from $1.03 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $1.17 to a profit $1.22. For the current year, the average estimate has moved up from a profit of $4.33 to a profit of $4.52 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at]