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Standard Motor (SMP) Inches Up 1.2% Since Q4 Earnings Beat

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Standard Motor Products, Inc.’s (SMP - Free Report) shares have moved up 1.2% since the company delivered a comprehensive beat for fourth-quarter 2020. It reported adjusted earnings of $1.08 per share for fourth-quarter 2020, which beat the Zacks Consensus Estimate of 66 cents. The bottom line was also higher than the prior-year quarter’s 59 cents per share. Robust performance of both its major segments — Engine Management and Temperature Control — aided fourth-quarter 2020 results.

Total revenues rose 17.4% year over year to $283 million, beating the Zacks Consensus Estimate of $253 million. Gross profit increased to $94.1 million from the year-ago quarter’s $72.8 million. Operating income also grew 74.7% year on year to $30.6 million.

The board approved a payout of 25 cents per share, payable on Mar 1, 2020. The company repurchased $4.8 million worth of stock during the quarter under review. Encouragingly, Standard Motor boosted buyback authorization by $20 billion. Standard Motor now has $26.5 million remaining under the current share-repurchase authorization.

Segmental Results

During the December-end quarter, revenues from the Engine Management segment totaled $231.9 million, up 14.8% year over year. Operating income was $29.2 million compared with the prior-year quarter’s $27.4 million.

Revenues in the Temperature Control segment increased 30% year over year to $47.7 million. The segment registered an operating income of more than $1 million versus a loss of around $3 million in the year-ago period.

Revenues in the All Other segment increased to $3.2 million from $2.6 million recorded in the prior-year quarter. The segment reported an operating loss of $7.1 million, wider than the loss of $5.7 million posted in the corresponding quarter of 2019.

Financial Position 

Standard Motor — whose peers include LKQ Corp. (LKQ - Free Report) , Genuine Parts (GPC - Free Report) and Dorman Products (DORM - Free Report) — had cash and cash equivalents of $19.5 million as of Dec 31, 2020 compared with $10.4 million in the corresponding period of 2019. Long-term debt was $97,000 compared with $129,000 recorded as of Dec 31, 2019. Fourth-quarter 2020 net cash provided by operating activities totaled $19.3 million. Capex for the quarter amounted to $4.65 million.

Standard Motor currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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