Genuine Parts Q3 Profit Edges Up, Results Miss View - Update

(RTTNews) - Automotive replacement parts distributor Genuine Parts Co. (GPC) Friday reported a marginal increase in third-quarter profit, as operating expenses advanced, despite 9 percent growth in sales. Both earnings per share, as well as revenues missed analysts' expectations.

Thomas Gallagher, chairman and chief executive officer of the company said, "While we achieved another quarter of record sales for the Company, the third quarter proved to be challenging for us. This was especially true in our non-automotive businesses, as the demand patterns across these segments decelerated in the quarter."

However, the company said its Automotive Group performed reasonably well and continues to report solid progress in their operations. Sales for the Automotive Group climbed 22 percent for the second consecutive period.

The increase included core North American growth of about 5 percent and positive impact of the Australasian acquisition, it added.

In the third quarter, the company's net income slightly increased to $173.75 million or $1.12 per share from $172.94 million or $1.11 per share in the prior year.

On average, 10 analysts polled by Thomson Reuters expected earnings per share of $1.19 for the quarter. Analysts' estimates typically exclude one-time items.

Net sales for the quarter increased 9 percent to $3.69 billion from $3.38 billion in the same quarter last year, but came below analysts' estimate of $3.76 billion.

Operating expenses advanced to $829.18 million from $704.50 million a year earlier.

GPC is currently trading at $77.42, down 4.15 percent on the NYSE.