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Standard Motor (SMP) Q1 Earnings Lag Estimates, Revenues Top

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Standard Motor Products Inc. (SMP - Free Report) reported earnings of 57 cents per share for first-quarter 2019, missing the Zacks Consensus Estimate of 63 cents. Further, the bottom line was lower than the prior-year quarter figure of 37 cents per share.

During the quarter under review, earnings from continuing operations were $13.1 million compared with$8.6 million recorded in the prior-year quarter. Strong performance by the operating divisions drove the company’s earnings in the quarter.

During the reported quarter, total revenues increased to $283.8 million, which surpassed the Zacks Consensus Estimate of $280 million. The year-ago figure was $262 million.

Standard Motor Products, Inc. Price, Consensus and EPS Surprise

 

Gross profit increased to $78 million from $72.6 million in the year-ago quarter. Operating income increased to $18 million from $12.3 million in the year-ago quarter.

Segmental Results

During the reported quarter, revenues from the Engine Management segment rose 6.9% year over year to $213 million.Operating income was $22.4 million (10.5% of sales) compared with $20.2 million (10.1% of sales) in the prior-year quarter.

Revenues at the Temperature Control segment increased 14.4% year over year to $68.9 million. The segment recorded operating income of $2.1 million (3% of sales) compared with operating income of $838,000 (1.4% of sales) in the first quarter of 2018.

Revenues at the All Other segment plunged to $1.7 million from $2.1 million a year ago. The segment registered operating loss of $4.6 million, lower than loss of $5 million recorded in the fourth quarter of 2017.

Financial Position

Standard Motor had cash and cash equivalents of $11.7 million as of Mar 31, 2019, compared with $26.2 million as of Mar 31, 2018. Other long-term debt was $161,000 as of Mar 31, 2019, compared with $153,000 as of Dec 31, 2018.

Dividend Update

The company’s board of directors approved a quarterly dividend of 23 cents per common share. The dividend will be paid on Jun 3, 2019, to shareholders as of May 15, 2019.

Zacks Rank & Stocks to Consider

Standard Motor currently carries a Zacks Rank #3 (Hold). A few better-ranked stocks in the auto space are PACCAR, Inc. (PCAR - Free Report) , Allison Transmission Holdings, Inc. (ALSN - Free Report) and Ford Motor Company (F - Free Report) , each currently carrying Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank  (Strong Buy) stocks here.

PACCAR has an expected long-term growth rate of 8.4%. The company’s stock has seen the Zacks Consensus Estimate for earnings in 2019 being revised 0.16% upward over the past 30 days.

Allison Transmission has an expected current-year growth rate of 10%. The company’s stock has seen the Zacks Consensus Estimate for earnings in 2019 being revised 2.4% upward over the past 30 days.

Ford has an expected long-term growth rate of 9.8%. The company’s stock has seen the Zacks Consensus Estimate for earnings in 2019 being revised 9.1% upward over the past 30 days.

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