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Standard Motor's (SMP) Q3 Earnings & Revenues Miss Estimates
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Share price of Standard Motor Products Inc. (SMP - Free Report) declined 4.78% to $44.22 on Oct 26, as the company missed earnings estimates.
Third-quarter 2017 adjusted earnings of 74 cents per share lagged the Zacks Consensus Estimate of 87 cents. Also, the bottom line deteriorated from the prior-year quarter figure of 92 cents per share.
Earnings from continuing operations were $17.2 million, declining from $21.3 million in the prior-year quarter.
Total revenue also decreased to $281.1 million from $300.8 million a year ago. The top line too fell short of the Zacks Consensus Estimate of $301.3 million.
Gross profit in the third quarter of 2017 decreased to $82.5 million from $95.6 million in the year-ago quarter. Operating income also declined to $26.9 million from $33.6 million in the year-ago quarter.
Segment Results
Revenues at the Engine Management segment slumped to $196.8 million in the reported quarter from $200.7 million a year ago. Operating profit was $23.5 million (12% of sales) compared with $36.7 million (18.3% of sales) in the prior-year quarter.
Revenues at the Temperature Control segment decreased to $81.2 million from $96.8 million a year ago. The segment recorded an operating profit of $8.1 million (9.9% of sales) compared with a profit of $9.9 million (10.3% of sales) in the third quarter of 2016.
Revenues at the All Other segment slightly decreased to $3.12 million from $3.19 million a year ago. The segment registered an operating loss of $3.8 million, narrower than $5.8 million in the third quarter of 2016.
Financial Position
Standard Motor had cash and cash equivalents of $25.4 million as of Sep 30, 2017 compared with $30.5 million as of Sep 30, 2016. Long-term debt of the company was $90,000 as of Sep 30, 2017 compared with $120,000 as of Dec 31, 2016.
Business Update
Standard Motor is still undergoing shifting of two locations. One is the General Cable North American ignition wire, in which, the entire production plant in Nogales, Mexico is being transferred to Reynosa, Mexico. Plus, the company is moving its Orlando, FL-based electronics plant to Independence, KA. Both are scheduled to be complete by mid-2018.
Dividend
Standard Motor’s board approved a dividend of 19 cents per share to be paid on Dec 1, to stockholders of record as on Nov 15.
Zacks Rank & Key Picks
Currently, Standard Motor has a Zacks Rank #3 (Hold).
Daimler has an expected long-term growth rate of 2.8%.
BorgWarner has an expected long-term growth rate of 8.9%.
Lear has an expected long-term growth rate of 7.1%.
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
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Standard Motor's (SMP) Q3 Earnings & Revenues Miss Estimates
Share price of Standard Motor Products Inc. (SMP - Free Report) declined 4.78% to $44.22 on Oct 26, as the company missed earnings estimates.
Third-quarter 2017 adjusted earnings of 74 cents per share lagged the Zacks Consensus Estimate of 87 cents. Also, the bottom line deteriorated from the prior-year quarter figure of 92 cents per share.
Earnings from continuing operations were $17.2 million, declining from $21.3 million in the prior-year quarter.
Total revenue also decreased to $281.1 million from $300.8 million a year ago. The top line too fell short of the Zacks Consensus Estimate of $301.3 million.
Gross profit in the third quarter of 2017 decreased to $82.5 million from $95.6 million in the year-ago quarter. Operating income also declined to $26.9 million from $33.6 million in the year-ago quarter.
Segment Results
Revenues at the Engine Management segment slumped to $196.8 million in the reported quarter from $200.7 million a year ago. Operating profit was $23.5 million (12% of sales) compared with $36.7 million (18.3% of sales) in the prior-year quarter.
Revenues at the Temperature Control segment decreased to $81.2 million from $96.8 million a year ago. The segment recorded an operating profit of $8.1 million (9.9% of sales) compared with a profit of $9.9 million (10.3% of sales) in the third quarter of 2016.
Revenues at the All Other segment slightly decreased to $3.12 million from $3.19 million a year ago. The segment registered an operating loss of $3.8 million, narrower than $5.8 million in the third quarter of 2016.
Financial Position
Standard Motor had cash and cash equivalents of $25.4 million as of Sep 30, 2017 compared with $30.5 million as of Sep 30, 2016. Long-term debt of the company was $90,000 as of Sep 30, 2017 compared with $120,000 as of Dec 31, 2016.
Business Update
Standard Motor is still undergoing shifting of two locations. One is the General Cable North American ignition wire, in which, the entire production plant in Nogales, Mexico is being transferred to Reynosa, Mexico. Plus, the company is moving its Orlando, FL-based electronics plant to Independence, KA. Both are scheduled to be complete by mid-2018.
Dividend
Standard Motor’s board approved a dividend of 19 cents per share to be paid on Dec 1, to stockholders of record as on Nov 15.
Zacks Rank & Key Picks
Currently, Standard Motor has a Zacks Rank #3 (Hold).
Some better-ranked companies in the auto space include Daimler AG , BorgWarner Inc. (BWA - Free Report) and Lear Corporation (LEA - Free Report) , each stock carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Daimler has an expected long-term growth rate of 2.8%.
BorgWarner has an expected long-term growth rate of 8.9%.
Lear has an expected long-term growth rate of 7.1%.
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
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