Shares of Genuine Parts Co. (GPC, Financial) traded almost 10% lower after the company announced its results for the third quarter of fiscal 2018, ended Sept. 30.
It posted diluted earnings per share of $1.08 and adjusted earnings per share of $1.16 but missed expectations by 12 cents. Revenue of $4.1 billion were in line with analysts' expectations and registered an increase of 4.1% year over year.
By segments, sales for the Automotive Group inched up 3.6% including an approximate 1% comparable sales increase. Sales at Motion Industries, the Industrial Group, were up 7.1%, including a 4% comparable sales increase, and sales at the Electrical/Electronic Group inched up by 11.6% with comparable sales down 1%. Sales for S.P. Richards, the Office Products Group, were down 4.7% in both total and comparable sales.
Paul Donahue, president and CEO, said that it was a challenging trimester. He was excited about entering into Europe with the pending acquisition of one of the leading automotive distributors in that region, Alliance Automotive Group. The deal is expected to be closed in November. He highlighted the 4% total sales increase despite natural disasters such as hurricanes.
Moreover, shares of Philip Morris International Inc. (PM, Financial) lost around 5% on Thursday on the back of the company announcing third-quarter results. It posted EPS of $1.27 which missed analysts' expectations by 11 cents, on revenue of $7.47 billion, which also came up short expectations by $250 million. Revenue's growth was 7.0% year over year.
André Calantzopoulos, CEO, said the company recorded a sequential improvement in the total volume performance, caused by combustible and reduced-risk products. Further, he added the growth on international market share.
Now the company expects its 2017 full-year diluted earnings per share to be between $4.75 and $4.80, at prevailing exchange rates, versus $4.48 in 2016.
Disclosure: The author holds no position in any stocks mentioned.
