=Genuine Parts (GPC) to buy European rival in $2 bln deal

• Sept 25 (Reuters) - U.S. automotive replacement parts distributor Genuine Parts Co said on Monday it would buy European rival Alliance Automotive Group from private equity funds managed by Blackstone and Alliance Automotive’s co-founders.  The deal is valued at about $2 billion, including debt.

AAG is the second largest parts distribution platform in Europe, with a focus on light vehicle and commercial vehicle replacement parts. Headquartered in London, AAG has 7,500 employees and over 1,800 company-owned stores and affiliated outlets across France, the U.K. and Germany. AAG has a consistent track record of organic revenue and earnings growth supported by strategic investments based on a proven M&A strategy to gain scale, efficiencies and geographic coverage. AAG is expected to generate gross annual billings of ~$2.3 billion (US$) including supplier direct billings, or $1.7 billion of revenue on a U.S. GAAP basis in 2017. Additionally, the Company expects the acquisition to be immediately accretive to earnings in the first year after closing. For 2018, incremental diluted earnings per share is estimated at $0.45 to $0.50 and adjusted earnings per share is estimated at $0.65 to $0.70, which excludes the amortization of acquisition-related intangibles. The Company expects to incur one-time transaction costs in the fourth quarter of 2017.

=O'Reilly Automotive (ORLY) warns of weaker-than-expected comps

• Worst day ever for ORLY

O'Reilly Auto sees Q2 comps +1.7% vs. +3-5% guidance :

• comparable store sales results of 1.7%, which fell short of previously issued second quarter comparable store sales guidance of 3% to 5%, and announced the release date for its full second quarter 2017 results as Wednesday, July 26, 2017, with a conference call to follow on Thursday, July 27, 2017.
• Greg Henslee, O'Reilly's CEO stated, "After exiting the first quarter and entering April on an improved sales trend, we faced a more challenging sales environment than we expected for the remainder of the quarter. Our second quarter comparable store sales results of 1.7% represent an improvement over our first quarter, but fell below our guidance of 3% to 5%, due to what we believe were continued headwinds from a second consecutive mild winter and overall weak consumer demand. The comparable store sales shortfall will also have a consequent impact on our operating profitability, which we will report in our full second quarter earnings release on July 26th." Mr. Henslee added, "While we are disappointed with our sales results in the first half of the year, we remain confident in the long-term health of our industry and our team's ability to provide exceptional customer service and take market share in this challenging demand environment."
• Peers: AAP, AZO, GPC

=Genuine Parts (GPC) reported earnings on Wed 19 Apr 2017 (b/o)

Genuine Parts beats by $0.03, beats on revs; raises FY17 EPS, reaffirms FY17 revs guidance :

• Reports Q1 (Mar) earnings of $1.08 per share, $0.03 better than the Capital IQ Consensus of $1.05; revenues rose 5.0% year/year to $3.91 bln vs the $3.85 bln Capital IQ Consensus.
• Co issues guidance for FY17, raises EPS to $4.75-4.85 from $4.70-4.80 vs. $4.76 Capital IQ Consensus; reaffirms FY17 revs +3-4% to ~$15.8-15.95 bln vs. $15.82 bln Capital IQ Consensus Estimate. 
• "We are pleased that our total sales increase in the first quarter of 2017 represents positive sequential sales improvement and is our strongest quarterly growth since the fourth quarter of 2014. As a diversified global distributor, we benefited from strong total sales growth in our international automotive, industrial, electrical and office operations. The strength in these areas was partially offset by the headwinds in our U.S. automotive business, which we are working to overcome."
• First quarter sales for the Automotive Group were up 3%, including an approximate 0.5% comparable sales increase. Sales at Motion Industries, our Industrial Group, were up 7%, including a 3% comparable sales increase, and sales at EIS, our Electrical/Electronic Group, were up 5%, with comparable sales up 2.5%. Sales for S.P. Richards, our Office Products Group, were up 9% for the quarter, including a 2.5% decrease in comparable sales.
• "It is encouraging that our overall growth was driven by sales increases across all four of our businesses, with positive comparable sales in all but one segment.

====Genuine Parts (GPC) reported earnings on Wed 19 Oct 2016 (b/o)

Genuine Parts misses by $0.04, misses on revs; lowers FY16 EPS, revs guidance  :

• Reports Q3 (Sep) earnings of $1.24 per share, $0.04 worse than the Capital IQ Consensus of $1.28; revenues rose 0.5% year/year to $3.94 bln vs the $4.02 bln Capital IQ Consensus.
• Co lowers guidance for FY16, sees EPS of $4.55-4.60 (Prior $4.70-4.75) vs. $4.72 Capital IQ Consensus Estimate; sees FY16 revs of ~$15.28-15.43 bln (Flat to +1% vs. prior guidance for +1-2%) vs. $15.46 bln Capital IQ Consensus Estimate.
• "Our third quarter results fell short of our expectations. We continue to operate in a tough sales environment, but our teams are working hard to overcome these challenges and generate growth. We recognize there is room for improvement and are working towards that in all aspects of our business. Our goal is to show improved results in the quarters ahead and better position the Company for sustainable growth well into the future. We have a strong balance sheet and excellent cash flows to support our efforts."