Genuine Parts Co. Q4 Profit Rises 19%, Beats View; Revenue Misses; Raises Dividend 8.6% (GPC)

Before the bell on Tuesday, replacement auto parts distributor Genuine Parts Company (GPC) reported mixed results to its fourth quarter earnings. The company saw a rise in profit that beat the Wall Street view, but revenue came in below analysts’ expectations. GPC also raised its quarterly dividend payout.

The Atlanta, Georgia-based company posted a fourth quarter net income of $160.23 million, or $1.03 per share, up from $134.96 million, or 86 cents per share, in the same quarter a year earlier. According to analysts polled by Thomson Reuters, this beat the consensus expectation that GPC would earn 93 cents per share in the quarter.

For the quarter, net sales rose about 3.5% to $3.12 billion from $3.01 billion a year earlier. This was below the analysts’ estimate of $3.19 billion in revenue for the quarter.

Tom Gallagher, CEO of Genuine Parts Company, said “Our total sales increase for the year was driven by respectable sales growth in three of our four businesses. The Automotive Group reported a 4% sales increase, led by solid progress in NAPA AutoCare and Major Accounts, our two primary commercial initiatives, combined with the incremental volume from the Quaker City acquisition. Motion Industries, our Industrial Group, increased sales by 7% for the year, driven by the combination of effective growth initiatives and a generally healthy industrial economy, although we did observe slower levels of manufacturing growth over the latter part of 2012. EIS, our Electrical/Electronic Group, was up 5% for the year.”

Gallagher went on to say, “As we turn our focus to the new year, we remain committed to our core objectives of growing sales and earnings, showing continued operating margin improvement, generating solid cash flows and maintaining a strong balance sheet. Further progress in each of these important areas will ensure another successful year in 2013.”

Also announced on Tuesday was that Genuine Parts declared an increase to its quarterly dividend. The company will now payout 53.75 cent per share in the quarter, up 8.6% from the prior dividend payout of 49.5 cents per share. This dividend will be payable on April 1 with an ex-dividend date of March 6.

Genuine Parts shares were inactive during pre-market trading on Tuesday. The stock is up about +9% over the past twelve months.

The Bottom Line
Shares of Genuine Parts Company (GPC) have a dividend yield of 3.01% based on Friday’s closing price of $71.44 and the company’s updated annualized dividend payout of $2.15 per share.

Genuine Parts Company (GPC) is not recommended at this time, holding a DARS™ Rating of 3.4 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks, as well as a detailed explanation of our ratings system here.

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