Topic: How To Invest

Wall Street Stock Forecaster Hotline – Friday, February 24, 2017

Article Excerpt

GENUINE PARTS CO., $96.25, New York symbol GPC, sells replacement auto parts through 1,100 outlets under the NAPA banner; its distribution business serves 4,900 independent stores in North America, Australia and New Zealand. Genuine also distributes industrial parts, office products and electrical equipment. The company has a long history of fuelling its growth with acquisitions, usually smaller firms that enhance its current operations. In 2016, it spent $400 million to buy 19 other businesses. As a result, Genuine’s overall sales in the fourth quarter of 2016 rose 2.7%, to $3.8 billion from $3.7 billion a year earlier. That matched the consensus forecast. However, due to the extra costs to absorb these new operations, the company’s earnings fell 5.4%, to $152.5 million from $161.3 million. Earnings per share declined 4.7%, to $1.02 from $1.07, on fewer shares outstanding. That still beat the consensus estimate of $1.01. The company has also raised its dividend. Starting with the April 2017 quarterly payment, investors will receive $0.675 a..