Genuine Parts (GPC) is a service organization engaged in the distribution of automotive replacement parts, industrial replacement parts, office products, and electrical materials. It was one of the S&P 500’s top losers on October 19, 2017.
On October 19, Genuine Parts opened the day lower and fell to the lowest levels in more than four weeks. The stock fell due to disappointing 3Q17 earnings results. According to management’s announcement, the EPS (earnings per share) in 3Q17 was $1.16, which is less than analysts’ forecast of $1.28. Management lowered its adjusted EPS estimate for 2017 from $4.55–$4.60 to $4.70–$4.75.
According to CEO Paul Donahue, the company’s steps to improve profitability and reduce costs didn’t work out as planned. He commented that the results are “disappointing.” On October 19, Genuine Parts fell 8.5% and closed the day at $89.71. The S&P 500 Consumer Discretionary sector fell 0.01% on Thursday.
Hewlett Packard Enterprise
Hewlett Packard Enterprise (HPE), which is a US multinational IT company, fell on Thursday. On October 19, Hewlett Packard Enterprise opened the day lower and fell to the lowest levels in a month.
The market sentiment on Hewlett Packard Enterprise fell after management’s announcement of a buyback plan as part of the 2018 outlook. Amid the promise to give back most of the cash to shareholders, Hewlett Packard Enterprise approved the addition of $5 billion for the stock buyback. On October 19, Hewlett Packard Enterprise fell 5.7% and closed the day at $13.86. The S&P 500 Information Technology sector fell 0.35% on Thursday.