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Standard Motor (SMP) Q2 Earnings & Revenues Top Estimates

Zacks Equity Research

Standard Motor Products Inc. SMP reported adjusted earnings of 92 cents per share in second-quarter 2019, beating the Zacks Consensus Estimate of 80 cents. Further, the bottom line was higher than the prior-year quarter figure of 74 cents per share.

During the quarter under review, earnings from continuing operations were $20.6 million compared with $16.8 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 $305.2 million, which surpassed the Zacks Consensus Estimate of $299 million. The year-ago figure was $286.6 million.

Gross profit increased to $88.9 million from $81.3 million in the year-ago quarter. Operating income increased to $27.7 million from $23.4 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. price-consensus-eps-surprise-chart | Standard Motor Products, Inc. Quote

Segmental Results

In the reported quarter, revenues from the Engine Management segment rose 7.2% year over year to $218 million. Operating income was $26.4 million (12.1% of sales) compared with $23.2 million (11.4% of sales) in the prior-year quarter.

Revenues at the Temperature Control segment increased 5% year over year to $84.4 million. The segment recorded operating income of $7.2 million (8.5% of sales) compared with $5.1 million (6.3% of sales) in the second quarter of 2018.

Revenues at the All Other segment rose to $3.1 million from $2.9 million a year ago. The segment registered operating loss of $5.1 million, wider than loss of $4.7 million recorded in the second quarter of 2018.

Financial Position

Standard Motor had cash and cash equivalents of $17.4 million as of Jun 30, 2019, compared with $18.6 million as of Jun 30, 2018. Other long-term debt was $153,000 as of Jun 30, 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 out on Sep 3, 2019, to shareholders as of Aug 15, 2019.

Zacks Rank & Stocks to Consider

Standard Motor currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the auto space are Copart, Inc CPRT, CarMax, Inc KMX and Advance Auto Parts, Inc. AAP. While Copart sports a Zacks Rank #1 (Strong Buy), CarMax and Advance Auto Parts has a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Copart has an expected long-term growth rate of 20%. In the past year, shares of the company have shot up 39%.

CarMax has an expected long-term growth rate of 12.6%. In the past year, shares of the company have rallied 19.4%.

Advance Auto Parts has an expected long-term growth rate of 11.6%. In the past year, shares of the company have improved 7.3%.

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