Product Offerings Aid Genuine Parts (GPC) Amid Expense Woes
Zacks Investment Research | Jun 26, 2019 08:31AM ET
On Jun 25, we issued an updated research report on Genuine Parts Company (NYSE:GPC) .
The company resorts to acquisition in order to improve its product offerings and solidify its global platform. This, in turn, helps it attain robust and sustainable sales growth. In May 2019, the company announced to acquire the outstanding 65% stake in Sydney, Australia-based Inenco Group (‘Inenco’). After completing the acquisition, Genuine Parts will have 100% ownership in Inenco. In first-quarter 2019, Genuine Parts acquired Axis New England and Axis New York, and these were added to the Industrial Parts Group.
In first-quarter 2019, the company reported net sales of $4.74 billion, up 3.3% year over year. Net sales included 3.3% comparable growth, roughly 2% from acquisitions, partly offset by 2% adverse impact of foreign currency translation.
However, Genuine Parts has been witnessing continuous rise in selling, general & administrative (SG&A) expenses that might hamper the gross margin. Further, unfavorable foreign currency translation also added to the company’s woes that reduced quarterly earnings.
Over the past year, shares of Genuine Parts have outperformed the Zacks Investment Research
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