Genuine Parts’ Electrical and Office Results Disappoint, but Long-Term Outlook Intact
We plan a low- to mid-single-digit percentage cut for our $99 per share valuation for narrow-moat Genuine Parts after it posted soft quarterly earnings. Our reaction is more tepid than prevailing sentiment, likely because our full-year revenue and adjusted diluted EPS marks were already conservative. We see the shares as modestly attractive.The company reported 4% revenue growth and 75 basis points of operating margin degradation (to 7.6%) in the third quarter, versus our 4% and 10 basis point ...
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.
Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. The company offer an extensive line of products and services for individual investors, financial advisors, asset managers, and retirement plan providers and sponsors.
Morningstar provides data on approximately 530,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 18 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its investment advisory subsidiaries and had approximately $185 billion in assets under advisement and management as of June 30, 2016.
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