It has been about a month since the last earnings report for Standard Motor Products (SMP Quick QuoteSMP - Free Report) . Shares have added about 1.7% in that time frame, underperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is Standard Motor Products due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.

Standard Motor Puts On a Stellar Q2 Show

Standard Motor  reported adjusted earnings of $1.26 per share for second-quarter 2021, beating the Zacks Consensus Estimate of 67 cents. The bottom line also came in higher than the prior-year quarter’s 52 cents per share. Robust performance of both its major segments — Engine Management and Temperature Control — boosted the quarterly results.

Total revenues jumped 38% year over year to $342.1 million, surpassing the Zacks Consensus Estimate of $267 million. Gross profit surged to $99.3 million from the year-ago quarter’s $64.4 million. Operating income skyrocketed 130.5%, year on year, to $36.9 million.

The board approved a dividend payout of 25 cents per share, payable on Sep 1, to stockholders as of Aug 16, 2021.

Segmental Results

During the June-end quarter, revenues from the Engine Management segment totaled $233.2 million, up 35% year over year. Operating income was $30.4 million compared with the prior-year quarter’s $16.7 million. This upside was driven by successful customer initiatives, new business wins, contributions from acquisitions and overall strong demand.

Revenues in the Temperature Control segment surged 47% year over year to $106.5 million. The segment registered an operating income of $13.2 million compared with the $4 million witnessed in the year-ago period.

Revenues in the All Other segment came in at $2.4 million, roughly at par with the revenue figure recorded in the prior-year period. However, the segment reported an operating loss of $5.9 million, wider than the loss of $4.7 million posted in the corresponding quarter of 2020.

Financial Position

Standard Motor had cash and cash equivalents of $27.4 million as of Jun 30, 2021 compared with $19.5 million as of Dec 31, 2020. Long-term debt was $80,000 compared with $97,000 recorded as of Dec 31, 2020. For the six-month period ended Jun 30, 2021, net cash provided by operating activities totaled $23.2 million, compared with the $885,000 used in the corresponding period last year. Capex for the quarter amounted to $6.7 million, higher than the $4.6 million recorded in the year-ago quarter.

How Have Estimates Been Moving Since Then?

It turns out, fresh estimates have trended downward during the past month. The consensus estimate has shifted -5.75% due to these changes.

VGM Scores

At this time, Standard Motor Products has a nice Growth Score of B, though it is lagging a bit on the Momentum Score front with a C. Charting a somewhat similar path, the stock was allocated a grade of B on the value side, putting it in the second quintile for this investment strategy.

Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending downward for the stock, and the magnitude of this revision indicates a downward shift. Notably, Standard Motor Products has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months.