Genuine Parts (GPC) Misses Q2 EPS by 1c

Genuine Parts (NYSE: GPC) reported Q2 EPS of $1.28, $0.01 worse than the analyst estimate of $1.29. Revenue for the quarter came in at $3.9 billion versus the consensus estimate of $3.97 billion.

Paul Donahue, President and Chief Executive Officer, commented, "Total sales in the second quarter were down 1% from the prior year, inclusive of a 2% contribution from acquisitions less a currency headwind of 1%. Sales for the Automotive Group were down 0.7%, consisting of a 1% core sales decline, a 1.5% currency headwind and an approximate 2% contribution from acquisitions. Sales at Motion Industries, our Industrial Group, were down 1.7%, including a 3% underlying sales decrease and an approximate 0.5% currency headwind, offset by a 2% benefit from acquisitions. Sales at EIS, our Electrical/Electronic Group, were down approximately 5%, including a 1% negative impact of copper pricing. Sales for S. P. Richards, our Office Products Group, were up 1%, consisting of a 5% contribution from acquisitions offset by a 4% underlying sales decrease."

Mr. Donahue stated, "This quarter our automotive sales along with our other distribution businesses were all impacted by the challenging sales environment. We offset some of this impact with key sales and gross margin initiatives as well as tight expense controls. Importantly, we also further improved the strength of our balance sheet and cash flows with effective working capital management. We expect the combination of these efforts to support stronger growth for the Company over the long-term."

Genuine Parts reaffirmed FY2016 guidance.

For earnings history and earnings-related data on Genuine Parts (GPC) click here.

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