We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Standard Motor (SMP) Stock Falls 1.3% Since Q1 Earnings Beat
Read MoreHide Full Article
Shares of Standard Motor Products (SMP - Free Report) fell 1.3% since the company reported first-quarter 2024 results. It reported adjusted earnings per share (EPS) of 45 cents, which declined from 61 cents in the prior-year quarter but beat the Zacks Consensus Estimate of 40 cents.
Total revenues rose to $331.4 million from $328 million reported in the first quarter of 2023. The reported figure also beat the Zacks Consensus Estimate of $323 million. Gross profit fell to $89.5 million from the year-ago quarter’s $91.27 million. Operating income declined to $14.62 million from $20.75 million reported in the year-ago quarter.
Standard Motor Products, Inc. Price, Consensus and EPS Surprise
In the reported quarter, revenues from the Vehicle Control segment totaled $185.5 million, which rose 0.5% year over year and beat our estimate of $177.5 million due to normalized ordering patterns following a slowdown in the fourth quarter of 2023. Operating income was $15.6 million, down from the prior-year quarter’s $17.6 million.
Revenues from the Engineered Solutions segment totaled $74.3 million, up 4.6% year over year. The metric also surpassed our estimate of $73 million. Operating income was $2.24 million, down from the prior-year quarter’s $5.73 million.
Revenues from the Temperature Control segment came in at $71.6 million, which declined from the year-ago quarter’s $72.4 million, as well as missed our projection of $74.4 million due to the timing of pre-season orders. The segment registered an operating income of $2.1 million, down from $2.63 million reported in the year-ago period.
Operating loss from the Other segment was $5.18 million, wider than the loss of $4.36 million recorded in the year-ago quarter.
Financial Position
Standard Motor had $27.1 million in cash as of Mar 31, 2024, compared with $32.5 million as of Dec 31, 2023.
Long-term debt totaled $209.9 million as of Mar 31, 2024, compared with $151.2 million as of Dec 31, 2023.
Net cash outflow from operating activities totaled $45.7 million at the end of the first quarter of 2024. SG&A expenses rose 7.3% to $74.7 million.
The company approved a quarterly dividend of 29 cents per share, which will be paid out on Jun 3, 2024, to stockholders of record as of May 15, 2024.
2024 Guidance
For 2024, the company expects sales growth to be flat to low single-digit. Standard Motor expects adjusted EBITDA in the range of 9-9.5% of total revenues. Operating expenses, inclusive of factoring, are expected in the range of $76-$82 million for each of the remaining three quarters of 2024.
The Zacks Consensus Estimate for GELYY’s 2024 sales suggests year-over-year growth of 36.6%. The EPS estimates for 2024 and 2025 have moved up 34 cents and 54 cents, respectively, in the past 60 days.
The Zacks Consensus Estimate for BLBD’s 2024 sales and earnings suggests year-over-year growth of 17.29% and 139.25%, respectively. The EPS estimates for 2024 and 2025 have moved up 42 cents and 41 cents, respectively, in the past seven days.
The Zacks Consensus Estimate for OSK’s 2024 sales and earnings suggests year-over-year growth of 9.86% and 10.72%, respectively. The EPS estimates for 2024 and 2025 have improved 73 cents and 70 cents, respectively, in the past 30 days.
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Standard Motor (SMP) Stock Falls 1.3% Since Q1 Earnings Beat
Shares of Standard Motor Products (SMP - Free Report) fell 1.3% since the company reported first-quarter 2024 results. It reported adjusted earnings per share (EPS) of 45 cents, which declined from 61 cents in the prior-year quarter but beat the Zacks Consensus Estimate of 40 cents.
Total revenues rose to $331.4 million from $328 million reported in the first quarter of 2023. The reported figure also beat the Zacks Consensus Estimate of $323 million. Gross profit fell to $89.5 million from the year-ago quarter’s $91.27 million. Operating income declined to $14.62 million from $20.75 million reported in the year-ago quarter.
Standard Motor Products, Inc. Price, Consensus and EPS Surprise
Standard Motor Products, Inc. price-consensus-eps-surprise-chart | Standard Motor Products, Inc. Quote
Segmental Results
In the reported quarter, revenues from the Vehicle Control segment totaled $185.5 million, which rose 0.5% year over year and beat our estimate of $177.5 million due to normalized ordering patterns following a slowdown in the fourth quarter of 2023. Operating income was $15.6 million, down from the prior-year quarter’s $17.6 million.
Revenues from the Engineered Solutions segment totaled $74.3 million, up 4.6% year over year. The metric also surpassed our estimate of $73 million. Operating income was $2.24 million, down from the prior-year quarter’s $5.73 million.
Revenues from the Temperature Control segment came in at $71.6 million, which declined from the year-ago quarter’s $72.4 million, as well as missed our projection of $74.4 million due to the timing of pre-season orders. The segment registered an operating income of $2.1 million, down from $2.63 million reported in the year-ago period.
Operating loss from the Other segment was $5.18 million, wider than the loss of $4.36 million recorded in the year-ago quarter.
Financial Position
Standard Motor had $27.1 million in cash as of Mar 31, 2024, compared with $32.5 million as of Dec 31, 2023.
Long-term debt totaled $209.9 million as of Mar 31, 2024, compared with $151.2 million as of Dec 31, 2023.
Net cash outflow from operating activities totaled $45.7 million at the end of the first quarter of 2024. SG&A expenses rose 7.3% to $74.7 million.
The company approved a quarterly dividend of 29 cents per share, which will be paid out on Jun 3, 2024, to stockholders of record as of May 15, 2024.
2024 Guidance
For 2024, the company expects sales growth to be flat to low single-digit. Standard Motor expects adjusted EBITDA in the range of 9-9.5% of total revenues. Operating expenses, inclusive of factoring, are expected in the range of $76-$82 million for each of the remaining three quarters of 2024.
Zacks Rank & Key Picks
SMP currently carries a Zacks Rank #4 (Sell).
Some better-ranked players in the auto space are Geely Automobile Holdings Limited (GELYY - Free Report) , Blue Bird Corporation (BLBD - Free Report) and Oshkosh Corporation (OSK - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for GELYY’s 2024 sales suggests year-over-year growth of 36.6%. The EPS estimates for 2024 and 2025 have moved up 34 cents and 54 cents, respectively, in the past 60 days.
The Zacks Consensus Estimate for BLBD’s 2024 sales and earnings suggests year-over-year growth of 17.29% and 139.25%, respectively. The EPS estimates for 2024 and 2025 have moved up 42 cents and 41 cents, respectively, in the past seven days.
The Zacks Consensus Estimate for OSK’s 2024 sales and earnings suggests year-over-year growth of 9.86% and 10.72%, respectively. The EPS estimates for 2024 and 2025 have improved 73 cents and 70 cents, respectively, in the past 30 days.