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Standard Motor Products (SMP) Down 6.4% Since Last Earnings Report: Can It Rebound?
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It has been about a month since the last earnings report for Standard Motor Products (SMP - Free Report) . Shares have lost about 6.4% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Standard Motor Products due for a breakout? 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 Q1 Earnings Lag Estimates, Revenues Top
Standard Motor 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.
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 $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.
How Have Estimates Been Moving Since Then?
Fresh estimates followed a downward path over the past two months. The consensus estimate has shifted -9.39% due to these changes.
VGM Scores
At this time, Standard Motor Products has an average Growth Score of C, though it is lagging a bit on the Momentum Score front with a D. Charting a somewhat similar path, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Standard Motor Products has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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Standard Motor Products (SMP) Down 6.4% Since Last Earnings Report: Can It Rebound?
It has been about a month since the last earnings report for Standard Motor Products (SMP - Free Report) . Shares have lost about 6.4% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Standard Motor Products due for a breakout? 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 Q1 Earnings Lag Estimates, Revenues Top
Standard Motor 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.
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 $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.
How Have Estimates Been Moving Since Then?
Fresh estimates followed a downward path over the past two months. The consensus estimate has shifted -9.39% due to these changes.
VGM Scores
At this time, Standard Motor Products has an average Growth Score of C, though it is lagging a bit on the Momentum Score front with a D. Charting a somewhat similar path, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Standard Motor Products has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.