Genuine Parts Increases Sales but Misses Revenue Estimate

Genuine Parts (NYSE: GPC  ) reported earnings on Feb. 19. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Genuine Parts missed estimates on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue grew. GAAP earnings per share grew significantly.

Gross margins contracted, operating margins increased, net margins increased.

Revenue details
Genuine Parts logged revenue of $3.12 billion. The seven analysts polled by S&P Capital IQ predicted revenue of $3.19 billion on the same basis. GAAP reported sales were the same as the prior-year quarter's.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $1.03. The nine earnings estimates compiled by S&P Capital IQ predicted $0.93 per share. GAAP EPS of $1.03 for Q4 were 20% higher than the prior-year quarter's $0.86 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 29.2%, 40 basis points worse than the prior-year quarter. Operating margin was 8.1%, 110 basis points better than the prior-year quarter. Net margin was 5.1%, 60 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $3.34 billion. On the bottom line, the average EPS estimate is $1.00.

Next year's average estimate for revenue is $13.74 billion. The average EPS estimate is $4.35.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 347 members out of 368 rating the stock outperform, and 21 members rating it underperform. Among 141 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 134 give Genuine Parts a green thumbs-up, and seven give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Genuine Parts is hold, with an average price target of $65.67.

Looking for alternatives to Genuine Parts? It takes more than great companies to build a fortune for the future. Learn the basic financial habits of millionaires next door and get focused stock ideas in our free report, "3 Stocks That Will Help You Retire Rich." Click here for instant access to this free report.

• Add Genuine Parts to My Watchlist.