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Standard Motor Surpasses Q4 Earnings Estimates, Hikes Dividend
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Standard Motor Products (SMP - Free Report) posted fourth-quarter 2024 adjusted earnings per share (EPS) of 47 cents, which beat the Zacks Consensus Estimate of 37 cents and rose from 37 cents reported in the prior-year quarter.
See the Zacks Earnings Calendar to stay ahead of market-making news.
Total revenues rose to $343 million from $291 million reported in the fourth quarter of 2023. The reported figure also beat the Zacks Consensus Estimate of $297 million. Gross profit rose to $101 million from the year-ago quarter’s $81.5 million. Operating income fell to $3.9 million from $9.9 million reported in the year-ago quarter.
Standard Motor Products, Inc. Price, Consensus and EPS Surprise
On Nov. 1, 2024, Standard Motor completed the acquisition of AX V Nissens III APS (“Nissens”). The company now has four operating segments — Vehicle Control, Temperature Control, Engineered Solutions and Nissens Automotive.
In the reported quarter, revenues from the Vehicle Control segment totaled $187.4 million, which rose 4.9% year over year and beat our estimate of $179.9 million due to strong demand. Operating income was $17.2 million, down from the prior-year quarter’s $17.4 million.
Revenues from the Temperature Control segment came in at $58 million, which rose from the year-ago quarter’s $44.6 million and surpassed our projection of $43.9 million. The segment registered an operating income of $3.8 million against an operating loss of $3.3 million reported in the year-ago period.
Revenues from the Engineered Solutions segment totaled $62.2 million, down 7.9% year over year due to new business wins. The metric also lagged our estimate of $70.9 million. Operating income was $1.9 million, up from the prior-year quarter’s $1.04 million.
Revenues from the Nissens Automotive segment totaled $35.7 million. The segment registered an operating income of $385,000.
Operating loss from the Other segment was $5.5 million, wider than the loss of $3.9 million recorded in the year-ago quarter.
Financial Position
Standard Motor had $44.4 million in cash as of Dec. 31, 2024, compared with $32.5 million as of Dec. 31, 2023.
Long-term debt totaled $535.2 million as of Dec. 31, 2024, compared with $151.2 million as of Dec. 31, 2023.
Net cash provided by the operating activities totaled $76.7 million at the end of the fourth quarter of 2024. SG&A expenses rose 22.7% to $86.3 million.
The company hiked its quarterly dividend by 6.9% to 31 cents per share. The dividend will be paid out on March 3, 2025, to stockholders of record as of Feb. 14, 2025.
SMP Provides 2025 Guidance
For 2025, the company expects sales growth to be in the mid-teens. It expects adjusted EBITDA in the range of 10-11% of total revenues.
The Zacks Consensus Estimate for GELYY’s fiscal 2025 sales and earnings indicates year-over-year growth of 66.62% and 149.31%, respectively. EPS estimates for fiscal 2025 and 2026 have improved 15 cents and 38 cents, respectively, in the past 60 days.
The Zacks Consensus Estimate for DAN’s 2025 earnings implies year-over-year growth of 70.21%. EPS estimates for 2025 and 2026 have improved 10 cents each in the past seven days.
The Zacks Consensus Estimate for STRT’s 2025 sales indicates year-over-year growth of 2.61%. EPS estimates for 2025 and 2026 have improved 91 cents and $1.06, respectively, in the past 30 days.
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Standard Motor Surpasses Q4 Earnings Estimates, Hikes Dividend
Standard Motor Products (SMP - Free Report) posted fourth-quarter 2024 adjusted earnings per share (EPS) of 47 cents, which beat the Zacks Consensus Estimate of 37 cents and rose from 37 cents reported in the prior-year quarter.
See the Zacks Earnings Calendar to stay ahead of market-making news.
Total revenues rose to $343 million from $291 million reported in the fourth quarter of 2023. The reported figure also beat the Zacks Consensus Estimate of $297 million. Gross profit rose to $101 million from the year-ago quarter’s $81.5 million. Operating income fell to $3.9 million from $9.9 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
On Nov. 1, 2024, Standard Motor completed the acquisition of AX V Nissens III APS (“Nissens”). The company now has four operating segments — Vehicle Control, Temperature Control, Engineered Solutions and Nissens Automotive.
In the reported quarter, revenues from the Vehicle Control segment totaled $187.4 million, which rose 4.9% year over year and beat our estimate of $179.9 million due to strong demand. Operating income was $17.2 million, down from the prior-year quarter’s $17.4 million.
Revenues from the Temperature Control segment came in at $58 million, which rose from the year-ago quarter’s $44.6 million and surpassed our projection of $43.9 million. The segment registered an operating income of $3.8 million against an operating loss of $3.3 million reported in the year-ago period.
Revenues from the Engineered Solutions segment totaled $62.2 million, down 7.9% year over year due to new business wins. The metric also lagged our estimate of $70.9 million. Operating income was $1.9 million, up from the prior-year quarter’s $1.04 million.
Revenues from the Nissens Automotive segment totaled $35.7 million. The segment registered an operating income of $385,000.
Operating loss from the Other segment was $5.5 million, wider than the loss of $3.9 million recorded in the year-ago quarter.
Financial Position
Standard Motor had $44.4 million in cash as of Dec. 31, 2024, compared with $32.5 million as of Dec. 31, 2023.
Long-term debt totaled $535.2 million as of Dec. 31, 2024, compared with $151.2 million as of Dec. 31, 2023.
Net cash provided by the operating activities totaled $76.7 million at the end of the fourth quarter of 2024. SG&A expenses rose 22.7% to $86.3 million.
The company hiked its quarterly dividend by 6.9% to 31 cents per share. The dividend will be paid out on March 3, 2025, to stockholders of record as of Feb. 14, 2025.
SMP Provides 2025 Guidance
For 2025, the company expects sales growth to be in the mid-teens. It expects adjusted EBITDA in the range of 10-11% of total revenues.
Standard Motor’s Zacks Rank & Key Picks
SMP carries a Zacks Rank #3 (Hold) at present.
Some better-ranked stocks in the auto space are Geely Automobile Holdings Limited (GELYY - Free Report) , Dana Incorporated (DAN - Free Report) and Strattec Security Corporation (STRT - 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 fiscal 2025 sales and earnings indicates year-over-year growth of 66.62% and 149.31%, respectively. EPS estimates for fiscal 2025 and 2026 have improved 15 cents and 38 cents, respectively, in the past 60 days.
The Zacks Consensus Estimate for DAN’s 2025 earnings implies year-over-year growth of 70.21%. EPS estimates for 2025 and 2026 have improved 10 cents each in the past seven days.
The Zacks Consensus Estimate for STRT’s 2025 sales indicates year-over-year growth of 2.61%. EPS estimates for 2025 and 2026 have improved 91 cents and $1.06, respectively, in the past 30 days.