LONDON, UK / ACCESSWIRE / October 26, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on Genuine Parts Co. (NYSE: GPC), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=GPC, following the Company's disclosure of its third quarter fiscal 2017 operating results on October 19, 2017. The car parts retailer's sales beat analysts' expectations, and also raised its fiscal 2017 sales guidance. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at:

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Earnings Reviewed

For the third quarter ended September 30, 2017, Genuine Parts' sales were $4.10 billion, reflecting a 4% increase compared to sales of $3.94 billion for Q3 2016. The Company's revenue numbers topped analysts' expectations of $4.08 billion.

During Q3 2016, Genuine Parts' gross margin totaled 29.95% compared to 30.4% in Q3 2016. The decline in gross margin was attributed to lower supplier incentives recorded in the reported quarter associated with lower-than-expected purchasing volume. Additionally, the Company experienced product mix shifts in several of its businesses such as US Automotive, and Office and Electrical, which also pressured margins. Genuine Parts' operating profit margin was 7.6% in Q3 2017 compared to 8.3% in Q3 2016.

For Q3 2017, Genuine Parts' net income totaled $158.44 million compared to $185.33 million recorded for Q3 2016. The Company's diluted earnings per share (EPS) were $1.08 compared to $1.24 in the year-ago same period. The Company's adjusted net income was $170 million, or $1.16 per diluted share, excluding the impact of certain transaction costs primarily related to Genuine Parts' pending $2.0 billion European acquisition recorded in Q3 2017. Genuine Parts' earnings fell short of Wall Street's estimates of $1.28 per share.

Segment Results

During Q3 2017, Genuine Parts' Automotive Group's sales totaled $2.17 billion, up 3.6% on a y-o-y basis, including an approximate 1% comparable sales increase. For the reported quarter, the Company's Industrial Group's sales totaled $1.24 billion compared to $1.16 billion in the year-ago corresponding period. Genuine Parts' Electrical/Electronic Group's sales grew 11.6% to $199.24 million on a y-o-y basis, with comparable sales down 1%. The Company's sales for S.P. Richards, the Office Products Group, totaled $509.97 million, down 4.7% in both total and comparable sales for the reported quarter.

Cash Matters

At the end of Q3 2017, Genuine Parts' accounts receivable totaled $2.2 billion, up 6% on a y-o-y basis. The Company's inventory was $3.4 billion, up 7% on a y-o-y basis at reported quarter end. Furthermore, excluding acquisitions and FX, increased 4% versus the year-ago corresponding period and up just less than 1% from the year-end.

As of September 30, 2017, Genuine Parts' accounts payable of $3.3 billion grew 6% on a y-o-y basis, despite slower purchasing activity across several of the Company's businesses, most notably in the US Automotive Group. At September 30, 2017, Genuine Parts' accounts, payable-to-inventory ratio was 98%. As at September 30, 2017, the Company's working capital of $1.5 billion was consistent with the year-ago same period.

Genuine Parts' total debt was $1.1 billion at September 30, 2017, up from $775 million in September 2016. The Company's average cost of debt was 2.49%. On a year-to-date basis, Genuine Parts has generated cash from operations of $542 million. The Company updated its full-year cash from operations to approximately $750 million to $800 million and free cash flows, which excludes capital expenditure and the dividend, in the band of $200 million to $250 million.

Genuine Parts' investment in capital expenditure was $43 million in Q3 2017, and stood at $97 million for the 9 months of the fiscal year 2017. For FY17, the Company is expecting to incur capital expenditure in the range of $140 million to $150 million.

2017 Outlook

For FY17, Genuine Parts raised its sales guidance from up 3% - 4% to up 4% - 4.5%. The Company also updated diluted EPS to range from $4.47 to $4.52 and adjusted diluted EPS to range from $4.55 to $4.60 compared to the prior outlook of $4.70 to $4.75.

Stock Performance

Genuine Parts' share price finished yesterday's trading session at $88.46, slightly sliding 0.51%. A total volume of 695.66 thousand shares have exchanged hands. The Company's stock price advanced 4.33% in the last three months. Shares of the Company have a PE ratio of 19.83 and have a dividend yield of 3.05%. The stock currently has a market cap of $13.15 billion.

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