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Standard Motor's (SMP) Q1 Earnings & Revenues Miss Estimates

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Standard Motor Products Inc. SMP reported first-quarter 2018 adjusted earnings per share of 46 cents per share, missing the Zacks Consensus Estimate of 66 cents. Also, the bottom line was lower than the prior-year quarter figure of 74 cents per share.

During the quarter under review, earnings from continuing operations were $8.6 million against $16.4 million in the prior-year quarter.

During the reported quarter, total revenues decreased to $261.8 million from $282.4 million a year ago. Moreover, the top line missed the Zacks Consensus Estimate of $280 million.

Gross profit decreased to $72.6 million from $84.1 million in the year-ago quarter. Operating income also declined to $12.3 million from $25.5 million in the year-ago quarter.

Segment Results

During the reported quarter, revenues at the Engine Management segment declined to $199.5 million from $211.3 million a year ago.

Operating income was $20.2 million (10.1% of sales) compared with $28.1 million (13.3% of sales) in the prior-year quarter.

Revenues at the Temperature Control segment decreased to $60.2 million from $70.3 million a year ago. The segment recorded operating income of $838,000 (1.4% of sales) compared with $4.7 million (6.7% of sales) in the first quarter of 2017.

Revenues at the All Other segment increased to $2.1 million from $774000 a year ago. The segment registered an operating loss of $6.2 million, slightly wider than the loss of $6.1 million in the first quarter of 2017.

 

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

 

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

 

Financial Position

Standard Motor had cash and cash equivalents of $26.2 million as of Mar 31, 2018, compared with $15.6 million as of Mar 31, 2017. Long-term debt was $42,000 as of Mar 31, 2018, compared with $79,000 as of Dec 31, 2017.

Dividend Update

The company’s board of directors approved a quarterly dividend of 21 cents per common share. The dividend will be paid on Jun 1, 2018, to stockholders of record as of May 15, 2018.

Zacks Rank & Key Picks

Currently, Standard Motor has a Zacks Rank #4 (Sell).

Some better-ranked stocks in the auto space are Visteon Corporation VC, Wabash National Corporation WNC and Fiat Chrysler Automobiles N.V. FCAU. Visteon and Wabash National currently carry a Zacks Rank #2 (Buy) while Fiat Chrysler sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Visteon has expected long-term growth rate of 15%. In the last three months, shares of the company have gained 3%.

Wabash National has expected long-term growth rate of 21.5%. Shares of the company have risen 0.5% in the last six months.

Fiat Chrysler has expected long-term growth rate of 23.7%. In the last six months, shares of the company have gained 24.1%.

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