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Standard Motor's (SMP) Q2 Earnings & Revenues Miss Estimates

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Standard Motor's (SMP) Q2 Earnings & Revenues Miss Estimates

In second-quarter 2018, Standard Motor's (SMP) total revenues decreases to $286.6 million from $312.7 million a year ago and also misses the Zacks Consensus Estimate of $305.5 million.

Standard Motor Products Inc. SMP reported second-quarter 2018 adjusted earnings of 74 cents per share, missing the Zacks Consensus Estimate of 83 cents. Also, the bottom line was lower than the prior-year quarter figure of 81 cents per share.

During the quarter under review, earnings from continuing operations were $16.8 million compared with $18.3 million in the prior-year quarter.

During the reported quarter, total revenues decreased to $286.6 million from $312.7 million a year ago. Moreover, the top line missed the Zacks Consensus Estimate of $305.5 million.

Gross profit decreased to $81.3 million from $90.7 million in the year-ago quarter. Operating income also declined to $23.4 million from $29.4 million in the year-ago quarter.

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

 

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

Segment Results

During the reported quarter, revenues in the Engine Management segment declined to $203.4 million from $223.3 million a year ago.

Operating income was $23.1 million (11.4% of sales) compared with $27.4 million (12.3% of sales) in the prior-year quarter.

Revenues at the Temperature Control segment decreased to $80.4 million from $87.4 million a year ago. The segment recorded operating income of $5.1 million (6.3% of sales) compared with $8.6 million (9.8% of sales) in the second quarter of 2017.

Revenues at the All Other segment increased to $2.8 million from $2 million a year ago. The segment registered an operating loss of $4.7 million, slightly lower than the loss of $5.7 million in the second quarter of 2017.

Financial Position

Standard Motor had cash and cash equivalents of $18.6 million as of Jun 30, 2018, compared with $16.4 million as of Jun 30, 2017. Long-term debt was $34,000 as of Jun 30, 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 Sep 4, 2018, to stockholders of record as of Aug 15, 2018.

Zacks Rank & Key Picks

Currently, Standard Motor has a Zacks Rank #3 (Hold).

Some better-ranked stocks in the auto space are Oshkosh Corporation OSK, AB Volvo VLVLY and Fox Factory Holding Corp. FOXF, each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Oshkosh has an expected long-term growth rate of 18.3%. Over the past year, shares of the company have moved up 7.3%.

AB Volvo has an expected long-term growth rate of 15%. Over the past year, shares of the company have gained 2.3%.

Fox Factory has an expected long-term growth rate of 15.8%. Shares of the company have risen 30.2% over the past year.

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