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Why Is Standard Motor Products (SMP) Down 0.1% Since Last Earnings Report?
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A month has gone by since the last earnings report for Standard Motor Products (SMP - Free Report) . Shares have lost about 0.1% in that time frame, outperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Standard Motor Products due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Standard Motor Puts On a Stellar Q1 Show
Standard Motor reported adjusted earnings of 97 cents per share for first-quarter 2021, which beat the Zacks Consensus Estimate of 50 cents. The bottom line also came in higher than the prior-year quarter’s 43 cents per share. Robust performance of both its major segments — Engine Management and Temperature Control — boosted the first-quarter 2021 results.
Total revenues rose 8.8% year over year to $276.6 million, topping the Zacks Consensus Estimate of $254 million. Gross profit increased to $83.8 million from the year-ago quarter’s $70.4 million. Operating income skyrocketed 104.7% year on year to $29.3 million.
The board approved a payout of 25 cents per share, payable on Jun 1, to stockholders as on May 17, 2021.
Segmental Results
During the March-end quarter, revenues from the Engine Management segment totaled $212 million, up 5.4% year over year. Operating income was $31.1 million compared with the prior-year quarter’s $21.6 million.
Revenues in the Temperature Control segment jumped 21.4% year over year to $62.5 million. The segment registered an operating income of $3.6 million as against the loss of around $348,000 in the year-ago period.
Revenues in the All Other segment increased to $2.1 million from the $1.7 million recorded in the prior-year quarter. The segment reported an operating loss of $5.4 million, narrower than the loss of $6.8 million posted in the corresponding quarter of 2020.
Financial Position
Standard Motor had cash and cash equivalents of $17.1 million as of Mar 31, 2021 compared with the $13.3 million recorded in the corresponding period of 2020. Long-term debt was $84,000 compared with $111,000 recorded as of Mar 31, 2020. First-quarter 2021 net cash used in operating activities totaled $11.4 million, down from the $32.8 million used in the prior-year quarter. Capex for the quarter amounted to $5 million, higher than the $4.4 million recorded in the year-ago quarter.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in fresh estimates. The consensus estimate has shifted 50.56% due to these changes.
VGM Scores
At this time, Standard Motor Products has a subpar Growth Score of D, however its Momentum Score is doing a bit better with a C. Charting a somewhat similar path, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Standard Motor Products has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
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Why Is Standard Motor Products (SMP) Down 0.1% Since Last Earnings Report?
A month has gone by since the last earnings report for Standard Motor Products (SMP - Free Report) . Shares have lost about 0.1% in that time frame, outperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Standard Motor Products due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Standard Motor Puts On a Stellar Q1 Show
Standard Motor reported adjusted earnings of 97 cents per share for first-quarter 2021, which beat the Zacks Consensus Estimate of 50 cents. The bottom line also came in higher than the prior-year quarter’s 43 cents per share. Robust performance of both its major segments — Engine Management and Temperature Control — boosted the first-quarter 2021 results.
Total revenues rose 8.8% year over year to $276.6 million, topping the Zacks Consensus Estimate of $254 million. Gross profit increased to $83.8 million from the year-ago quarter’s $70.4 million. Operating income skyrocketed 104.7% year on year to $29.3 million.
The board approved a payout of 25 cents per share, payable on Jun 1, to stockholders as on May 17, 2021.
Segmental Results
During the March-end quarter, revenues from the Engine Management segment totaled $212 million, up 5.4% year over year. Operating income was $31.1 million compared with the prior-year quarter’s $21.6 million.
Revenues in the Temperature Control segment jumped 21.4% year over year to $62.5 million. The segment registered an operating income of $3.6 million as against the loss of around $348,000 in the year-ago period.
Revenues in the All Other segment increased to $2.1 million from the $1.7 million recorded in the prior-year quarter. The segment reported an operating loss of $5.4 million, narrower than the loss of $6.8 million posted in the corresponding quarter of 2020.
Financial Position
Standard Motor had cash and cash equivalents of $17.1 million as of Mar 31, 2021 compared with the $13.3 million recorded in the corresponding period of 2020. Long-term debt was $84,000 compared with $111,000 recorded as of Mar 31, 2020. First-quarter 2021 net cash used in operating activities totaled $11.4 million, down from the $32.8 million used in the prior-year quarter. Capex for the quarter amounted to $5 million, higher than the $4.4 million recorded in the year-ago quarter.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in fresh estimates. The consensus estimate has shifted 50.56% due to these changes.
VGM Scores
At this time, Standard Motor Products has a subpar Growth Score of D, however its Momentum Score is doing a bit better with a C. Charting a somewhat similar path, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Standard Motor Products has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.