Standard Motor Products, Inc. (SMP - Free Report) reported third-quarter 2021 adjusted earnings of $1.32 per share, beating the Zacks Consensus Estimate of $1.07. However, the bottom line declined from the prior-year quarter’s $1.59 per share due to high SG&A expenses and weaker profits from the Engine Management unit.
Total revenues jumped 7.8% year over year to $370.3 million, surpassing the Zacks Consensus Estimate of $341.5 million. Gross profit fell to $105.2 million from the year-ago quarter’s $107.7 million. Operating income declined 19.8% to $38.5 million. A surge in various costs, mainly in the Engine Management segment, and the low gross margins in the company’s non-aftermarket business are the primary reasons for the fall in profit margins.
The board approved a dividend of 25 cents per share, payable on Dec 1 to stockholders on record as of Nov 15, 2021. The company repurchased common shares worth $15.4 million during the quarter and authorized an additional buyback program of $30 million.
Segmental Results
During the September quarter, revenues from the Engine Management segment totaled $247.2 million, up 7.7% 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. However, the operating income was $28 million compared with the prior-year quarter’s $36.7 million.
Revenues from the Temperature Control segment rose 7.9% year over year to $119.1 million. The segment registered an operating income of $16.7 million, marginally rising from $16.6 million.
Revenues from the All Other segment came in at $4.1 million, rising from $3.7 million in the prior-year period. However, the segment reported an operating loss of $5.2 million, marginally wider than the loss of $5.1 million posted in the corresponding quarter of 2020.
Financial Position
Standard Motor — which shares space with LKQ Corp. (LKQ - Free Report) , Genuine Parts (GPC - Free Report) , and Dorman Products (DORM - Free Report) — had cash and cash equivalents of $33.1 million as of Sep 30, 2021, compared with $19.5 million as of Dec 31, 2020. Long-term debt was $68,000 compared with $97,000 recorded as of Dec 31, 2020. For the nine months ended Sep 30, 2021, net cash provided by operating activities totaled $79.1 million compared with $78.6 million used in the corresponding period last year.
Standard Motor currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
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Standard Motor Products, Inc. (SMP - Free Report) reported third-quarter 2021 adjusted earnings of $1.32 per share, beating the Zacks Consensus Estimate of $1.07. However, the bottom line declined from the prior-year quarter’s $1.59 per share due to high SG&A expenses and weaker profits from the Engine Management unit.
Total revenues jumped 7.8% year over year to $370.3 million, surpassing the Zacks Consensus Estimate of $341.5 million. Gross profit fell to $105.2 million from the year-ago quarter’s $107.7 million. Operating income declined 19.8% to $38.5 million. A surge in various costs, mainly in the Engine Management segment, and the low gross margins in the company’s non-aftermarket business are the primary reasons for the fall in profit margins.
The board approved a dividend of 25 cents per share, payable on Dec 1 to stockholders on record as of Nov 15, 2021. The company repurchased common shares worth $15.4 million during the quarter and authorized an additional buyback program of $30 million.
Segmental Results
During the September quarter, revenues from the Engine Management segment totaled $247.2 million, up 7.7% 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. However, the operating income was $28 million compared with the prior-year quarter’s $36.7 million.
Revenues from the Temperature Control segment rose 7.9% year over year to $119.1 million. The segment registered an operating income of $16.7 million, marginally rising from $16.6 million.
Revenues from the All Other segment came in at $4.1 million, rising from $3.7 million in the prior-year period. However, the segment reported an operating loss of $5.2 million, marginally wider than the loss of $5.1 million posted in the corresponding quarter of 2020.
Financial Position
Standard Motor — which shares space with LKQ Corp. (LKQ - Free Report) , Genuine Parts (GPC - Free Report) , and Dorman Products (DORM - Free Report) — had cash and cash equivalents of $33.1 million as of Sep 30, 2021, compared with $19.5 million as of Dec 31, 2020. Long-term debt was $68,000 compared with $97,000 recorded as of Dec 31, 2020. For the nine months ended Sep 30, 2021, net cash provided by operating activities totaled $79.1 million compared with $78.6 million used in the corresponding period last year.
Standard Motor currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Zacks Naming Top 10 Stocks for 2024
Want to be tipped off early to our 10 top picks for the entirety of 2024?
History suggests their performance could be sensational.
From 2012 (when our Director of Research, Sheraz Mian assumed responsibility for the portfolio) through November, 2023, the Zacks Top 10 Stocks gained +974.1%, nearly TRIPLING the S&P 500’s +340.1%. Now Sheraz is combing through 4,400 companies to handpick the best 10 tickers to buy and hold in 2024. Don’t miss your chance to get in on these stocks when they’re released on January 2.
Be First to New Top 10 Stocks >>
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