Genuine Parts Earnings: Revenue Lighter Than Expected

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

Results: Net income for Genuine Parts Company rose to $172.9 million ($1.11 per share) vs. $151.8 million (97 cents per share) in the same quarter a year earlier. This marks a rise of 13.9% from the year-earlier quarter.

Revenue: Rose 2.7% to $3.38 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Genuine Parts Company beat the mean analyst estimate of $1.08 per share. Analysts were expecting revenue of $3.42 billion.

Quoting Management: Thomas C. Gallagher, Chairman and Chief Executive Officer commented, “We are encouraged by the record level of sales and earnings achieved for the quarter. While disappointed with the slower sales growth over the past two quarters, we are performing in-line or better than the current growth in our respective industries. The Company is well positioned to show continued growth in our businesses and we remain optimistic in our outlook for the fourth quarter of 2012 and beyond. Our management team remains committed to sustaining good revenue growth, further improving operating margins, generating solid cash flows and maintaining a strong balance sheet.”

Key Stats:

The company has now seen net income rise in three straight quarters. In the second quarter, net income rose 11.1% and in the first quarter, the figure rose 15.6%.

The company has now topped analyst estimates for the last four quarters. It beat the mark by 7 cents in the second quarter, by 3 cents in the first quarter, and by 2 cents in the fourth quarter of the last fiscal year.

Revenue has risen for the last four quarters. Revenue increased 4.8% to $3.34 billion in the second quarter. The figure rose 7% in the first quarter from the year earlier and climbed 7.4% in the fourth quarter of the last fiscal year from the year-ago quarter.

Looking Forward: Expectations for the company’s next-quarter performance are higher than they were ninety days ago. Over the past three months, the average estimate for the fourth quarter has risen to $1.12 per share from $1.11. The average estimate for the fiscal year is $4.07 per share, falling from $4.08 thirty days ago.

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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