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Standard Motor Q3 Earnings Beat Expectations, Increase Y/Y

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Standard Motor Products (SMP - Free Report) posted third-quarter 2024 adjusted earnings per share (EPS) of $1.28, which rose from $1.11 reported in the prior-year quarter and beat the Zacks Consensus Estimate of $1.09.

Total revenues rose to $399.3 million from $386.4 million reported in the third quarter of 2023. The reported figure also beat the Zacks Consensus Estimate of $396 million. Gross profit rose to $121.4 million from the year-ago quarter’s $114.8 million. Operating income rose to $37.1 million from $34.8 million reported in the year-ago quarter.

Stay up-to-date with the quarterly releases: See Zacks Earnings Calendar.

Segmental Results

In the reported quarter, revenues from the Vehicle Control segment totaled $200.9 million, which rose 5.2% year over year and beat our estimate of $193.4 million due to strong demand. Operating income was $16.1 million, down from the prior-year quarter’s $19.4 million.

Revenues from the Engineered Solutions segment totaled $72.4 million, up 1% year over year due to new business wins. The metric, however, lagged our estimate of $74.2 million. Operating income was $5.3 million, down from the prior-year quarter’s $7.3 million.

Revenues from the Temperature Control segment came in at $125.9 million, which rose from the year-ago quarter’s $123.6 million, but missed our projection of $128.2 million. The segment registered an operating income of $16.4 million, up from $13.2 million reported in the year-ago period.

Operating loss from the Other segment was $5.2 million, wider than the loss of $3.6 million recorded in the year-ago quarter.

Financial Position

Standard Motor had $26.3 million in cash as of Sept. 30, 2024, compared with $32.5 million as of Dec. 31, 2023.

Long-term debt totaled $140.2 million as of Sept. 30, 2024, compared with $151.2 million as of Dec. 31, 2023.

Net cash provided by the operating activities totaled $78.2 million at the end of the third quarter of 2024. SG&A expenses rose 1.7% to $81.2 million.

The company approved a quarterly dividend of 29 cents per share, which will be paid out on Dec. 2, 2024, to stockholders of record as of Nov. 15, 2024.

SMP Reiterates 2024 Guidance

For 2024, the company expects sales growth to be low- to mid-single digit. Standard Motor expects adjusted EBITDA in the range of 9-9.5% of total revenues.

Zacks Rank & Other Key Picks

SMP currently sports a Zacks Rank #1 (Strong Buy).

Some other top-ranked stocks in the auto space are Toyota Motor Corporation (TM - Free Report) ,  China Yuchai International Limited (CYD - Free Report) and BYD Company Limited (BYDDY - Free Report) , each sporting a Zacks Rank #1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for TM’s 2024 sales suggests year-over-year growth of 3.67%. EPS estimates for 2024 have improved 56 cents in the past 60 days. EPS estimates for 2025 have improved 6 cents in the past seven days.

The Zacks Consensus Estimate for CYD’s 2024 sales and earnings suggests year-over-year growth of 19.37% and 43.43%, respectively. EPS estimates for 2024 have improved by 35 cents in the past 60 days.

The Zacks Consensus Estimate for BYDDY’s 2024 sales and earnings suggests year-over-year growth of 20.91% and 23.63%, respectively. EPS estimates for 2024 and 2025 have improved by 12 cents and 13 cents, respectively, in the past seven days.

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