Strong sales, margins again slightly soft
GPC reported sales +3% ahead of expectations, with acquisitions contributing +14% of growth and comps up +3%. Encouragingly, Automotive improved sequentially, reporting the best comp since Q116. As has been the case in recent quarters, margins were soft however, missing AE by ~30bps. EPS was $0.01 ahead, but a lower tax rate added $0.05 vs. AE. FY18 sales guidance was raised 100bps, but EPS guidance was only maintained, despite the tax rate being lowered 100bps, implying lower underlying operating profit growth. Another quite mixed quarter from GPC.Genuine Parts is engaged in the distribution of automotive replacement parts, industrial parts, and business products. The company's reportable business segments are: Automotive, which distributes automotive parts and accessory items and provides inventory, cataloging, marketing, training and other programs to the automotive aftermarket; Industrial, which distributes industrial replacement parts and related supplies such as bearings, mechanical and electrical power transmission products, industrial automation, and hose, among others; and Business Products, which is engaged in the wholesale distribution of a line of office and other business-related products through a customer base of resellers.
Formed in 2003 by an established team from Cazenove, one of the most respected investment banks in the UK, Atlantic Equities conducts and publishes fundamental, bottom up research on mid and large cap US companies.
Atlantic provide order execution through a wide range of DMA products and algorithmic trading suites.
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