Please ensure Javascript is enabled for purposes of website accessibility

Genuine Parts Misses on Revenues and Profits

By Rich Duprey - Apr 19, 2013 at 5:38PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Aftermarket auto parts dealer expected slow start, and looks for business to pick up as year progresses

Aftermarket auto parts supplier Genuine Parts (GPC -2.48%) reported first-quarter earnings that came up short of the Capital IQ consensus estimates, while also missing top-line expectations, as well.

Genuine Parts recorded revenues of $3.198 billion in the quarter that ended March 31, a half percent increase over last year's $3.181 billion, but that was below Wall Street's estimates of $3.284 billion. On the bottom line, the auto parts supplier generated $144.4 million, or $0.93 per share, flat from the year ago figure, but below the $0.98 per share estimate.

Genuine Part's chairman and CEO Thomas C. Gallagher acknowledged that they anticipated the first quarter was going to be its most challenging and said:

Despite the rather slow start to the year, we remain optimistic about our prospects for stronger sales and earnings over the balance of 2013. Our sales initiatives and ongoing investments in the businesses, coupled with certain external indicators, bode well for our future growth.  

He maintains that the company continues to generate solid cash flows, and says that the balance sheet is strong. Genuine Parts reported ending the quarter with cash and equivalents totaling $841.9 million, and long-term debt of just $250 million. It also acquired Australasian aftermarket distributor Exego on April 1.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Genuine Parts Company Stock Quote
Genuine Parts Company
GPC
$128.72 (-2.48%) $-3.27

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
331%
 
S&P 500 Returns
115%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/20/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.