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Standard Motors (SMP) Beats on Q4 Earnings, Hikes Dividend
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Standard Motor Products Inc. (SMP - Free Report) reported fourth-quarter 2021 adjusted earnings of 90 cents per share, beating the Zacks Consensus Estimate of 66 cents. However, the bottom line declined from the prior-year quarter’s $1.08 due to non-recurring benefits related to the pandemic.
Total revenues jumped 9.6% year over year to $309.9 million, surpassing the Zacks Consensus Estimate of $286.3 million. Gross profit fell to $88.6 million from the year-ago quarter’s $94.1 million. Operating income declined 20.8% to $24.2 million. A surge in various costs, mainly in the Engine Management segment, resulted in a fall in profit margins. A second factor is related to an ongoing mix shift within the division in the specialized original equipment business, which has a different margin profile from the company’s aftermarket business.
The board approved a dividend increase from 25 cents to 27 cents per share, payable on Mar 1, 2022, to stockholders of record on Feb 15, 2022. The company repurchased common shares worth $26.9 million during the year.
Segmental Results
During the reported quarter, revenues from the Engine Management segment totaled $245.5 million, up 6% year over year. The upside was driven by a combination of strong demand, continued success from customer initiatives, new business wins and the positive impact of recent acquisitions and the partial benefit of price increases implemented in the quarter. The operating income was $28.2 million compared with the prior-year quarter’s $39.2 million.
Revenues from the Temperature Control segment rose 26.6% year over year to $60.4 million, led by a surge in sales on account of one of the hottest summers. The segment registered an operating income of $3.5 million, rising from $1 million.
Revenues from the All Other segment came in at $3.9 million, rising from $3.1 million in the prior-year period. The segment reported an operating loss of $7.2 million, marginally wider than the loss of $7.1 million incurred in the corresponding quarter of 2020.
Financial Position
Standard Motor had cash and cash equivalents of $21.7 million as of Dec 31, 2021, compared with $19.5 million as of Dec 31, 2020. Long-term debt was $21,000 compared with $97,000 recorded as of Dec 31, 2020. Net cash provided by operating activities totaled $85.6 million as of Dec 31, 2021, compared with $97.9 million provided in the corresponding period last year.
Tesla has an expected earnings growth rate of 40.7% for the current year. The Zacks Consensus Estimate for current-year earnings has been revised around 22.3% upward in the past 60 days.
Tesla’s earnings beat the Zacks Consensus Estimate in all of the trailing four quarters. TSLA pulled off a trailing four-quarter earnings surprise of 33.3%, on average. The stock has also rallied 18.5% over a year.
Harley-Davidson has an expected earnings growth rate of 1.9% for the current year. The Zacks Consensus Estimate for current-year earnings has been revised around 21.7% upward in the past 60 days.
Harley-Davison’s earnings beat the Zacks Consensus Estimate in all the trailing four quarters. HOG pulled off a trailing four-quarter earnings surprise of 77.59%, on average. The stock has rallied 12.5% over a year.
LCI Industries has an expected earnings growth rate of 25.6% for the current year. The Zacks Consensus Estimate for current-year earnings has been revised around 13.8% upward in the past 60 days.
LCI Industries’ earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed in one quarter. LCII pulled off a trailing four-quarter earnings surprise of 12.86%, on average. The stock has declined 13.8% over a year.
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Standard Motors (SMP) Beats on Q4 Earnings, Hikes Dividend
Standard Motor Products Inc. (SMP - Free Report) reported fourth-quarter 2021 adjusted earnings of 90 cents per share, beating the Zacks Consensus Estimate of 66 cents. However, the bottom line declined from the prior-year quarter’s $1.08 due to non-recurring benefits related to the pandemic.
Total revenues jumped 9.6% year over year to $309.9 million, surpassing the Zacks Consensus Estimate of $286.3 million. Gross profit fell to $88.6 million from the year-ago quarter’s $94.1 million. Operating income declined 20.8% to $24.2 million. A surge in various costs, mainly in the Engine Management segment, resulted in a fall in profit margins. A second factor is related to an ongoing mix shift within the division in the specialized original equipment business, which has a different margin profile from the company’s aftermarket business.
The board approved a dividend increase from 25 cents to 27 cents per share, payable on Mar 1, 2022, to stockholders of record on Feb 15, 2022. The company repurchased common shares worth $26.9 million during the year.
Segmental Results
During the reported quarter, revenues from the Engine Management segment totaled $245.5 million, up 6% year over year. The upside was driven by a combination of strong demand, continued success from customer initiatives, new business wins and the positive impact of recent acquisitions and the partial benefit of price increases implemented in the quarter. The operating income was $28.2 million compared with the prior-year quarter’s $39.2 million.
Revenues from the Temperature Control segment rose 26.6% year over year to $60.4 million, led by a surge in sales on account of one of the hottest summers. The segment registered an operating income of $3.5 million, rising from $1 million.
Revenues from the All Other segment came in at $3.9 million, rising from $3.1 million in the prior-year period. The segment reported an operating loss of $7.2 million, marginally wider than the loss of $7.1 million incurred in the corresponding quarter of 2020.
Financial Position
Standard Motor had cash and cash equivalents of $21.7 million as of Dec 31, 2021, compared with $19.5 million as of Dec 31, 2020. Long-term debt was $21,000 compared with $97,000 recorded as of Dec 31, 2020. Net cash provided by operating activities totaled $85.6 million as of Dec 31, 2021, compared with $97.9 million provided in the corresponding period last year.
Zacks Rank & Other Key Picks
Currently, SMP has a Zacks Rank #2 (Buy).
Better-ranked players in the auto space include Tesla (TSLA - Free Report) , Harley-Davidson (HOG - Free Report) and LCI Industries (LCII - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) currently. You can see the complete list of today’s Zacks #1 Rank stocks here.
Tesla has an expected earnings growth rate of 40.7% for the current year. The Zacks Consensus Estimate for current-year earnings has been revised around 22.3% upward in the past 60 days.
Tesla’s earnings beat the Zacks Consensus Estimate in all of the trailing four quarters. TSLA pulled off a trailing four-quarter earnings surprise of 33.3%, on average. The stock has also rallied 18.5% over a year.
Harley-Davidson has an expected earnings growth rate of 1.9% for the current year. The Zacks Consensus Estimate for current-year earnings has been revised around 21.7% upward in the past 60 days.
Harley-Davison’s earnings beat the Zacks Consensus Estimate in all the trailing four quarters. HOG pulled off a trailing four-quarter earnings surprise of 77.59%, on average. The stock has rallied 12.5% over a year.
LCI Industries has an expected earnings growth rate of 25.6% for the current year. The Zacks Consensus Estimate for current-year earnings has been revised around 13.8% upward in the past 60 days.
LCI Industries’ earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed in one quarter. LCII pulled off a trailing four-quarter earnings surprise of 12.86%, on average. The stock has declined 13.8% over a year.