Standard Motor Products Inc (SMP) Announces Q3 2023 Results and Quarterly Dividend
Net sales for Q3 2023 were $386.4 million, up from $381.4 million in Q3 2022.
Earnings from continuing operations for Q3 2023 were $24.9 million or $1.12 per diluted share, compared to $23.1 million or $1.06 per diluted share in Q3 2022.
Consolidated net sales for the nine months ended September 30, 2023, were $1.07 billion, slightly up from $1.06 billion during the same period in 2022.
The Board of Directors approved a quarterly dividend of 29 cents per share on the common stock outstanding.
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On October 27, 2023, Standard Motor Products Inc (NYSE:SMP), a leading automotive parts manufacturer and distributor, announced its consolidated financial results for the three and nine months ended September 30, 2023.
Financial Performance
Standard Motor Products Inc (NYSE:SMP) reported net sales of $386.4 million for the third quarter of 2023, a 1.3% increase from the $381.4 million recorded during the same period in 2022. Earnings from continuing operations for Q3 2023 were $24.9 million or $1.12 per diluted share, up from $23.1 million or $1.06 per diluted share in Q3 2022. Excluding non-operational gains and losses, earnings from continuing operations for Q3 2023 were $24.7 million or $1.11 per diluted share, compared to $22.9 million or $1.05 per diluted share in Q3 2022.
For the nine months ended September 30, 2023, consolidated net sales were $1.07 billion, a slight increase from the $1.06 billion recorded during the same period in 2022. Earnings from continuing operations for the nine months ended September 30, 2023, were $55.9 million or $2.52 per diluted share, compared to $64.5 million or $2.91 per diluted share in the same period of 2022.
Segment Performance
Vehicle Control sales were down 3.4% in the quarter, while Temperature Control sales increased 5.3% due to a warm summer. The Engineered Solutions segment saw an increase of 8.4% in the quarter due to solid demand from existing customers and new business wins.
Profitability and Cash Flow
Consolidated non-GAAP operating margins were 9.1% in the quarter, 30 basis points better than the 8.8% in the third quarter last year. From a cash flow perspective, the company was pleased with the impact of its initiatives on reducing both its inventory and borrowing levels. At quarter-end, the inventory was $479.8 million, down from $528.7 million at year-end 2022 and $534.3 million in last years third quarter. Additionally, total debt at quarter-end stood at $147.6 million as the company paid down $75.6 million in the third quarter.
Dividend Announcement
The Board of Directors has approved payment of a quarterly dividend of 29 cents per share on the common stock outstanding, which will be paid on December 1, 2023 to stockholders of record on November 15, 2023.
Outlook
For the full year 2023, Standard Motor Products Inc (NYSE:SMP) anticipates top line sales growth to be flat to low-single digit, and its Adjusted EBITDA to be approximately 9.5% of revenue. This outlook considers higher expense related to customer factoring programs that will be roughly $48-$50 million at current implied rates, as well as the impact of startup costs and duplicate overhead expense associated with the new distribution center discussed last quarter.
Explore the complete 8-K earnings release (here) from Standard Motor Products Inc for further details.
This article first appeared on GuruFocus.
