U.S. Markets close in 12 mins

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

Zacks Equity Research

Standard Motor Products Inc. SMP 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

 

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

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, Allison Transmission Holdings, Inc. ALSN and Ford Motor Company F, 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.

Zacks' Top 10 Stocks for 2019

In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-holds for the year?

Who wouldn't? Our annual Top 10s have beaten the market with amazing regularity. In 2018, while the market dropped -5.2%, the portfolio scored well into double-digits overall with individual stocks rising as high as +61.5%. And from 2012-2017, while the market boomed +126.3, Zacks' Top 10s reached an even more sensational +181.9%.

See Latest Stocks Today >>