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Standard Motor (SMP) Q3 Earnings & Revenues Top Estimates

Zacks Equity Research

Standard Motor Products Inc. SMP reported adjusted earnings of $1.02 per share in third-quarter 2019, beating the Zacks Consensus Estimate of 92 cents. Further, the bottom line comes in higher than the prior-year quarter’s 83 cents per share. The Engine Management division’s solid performance drove the company’s earnings.

During the third quarter, earnings from continuing operations were $22.7 million compared with the $19.3 million recorded in the prior-year quarter. During the reported quarter, total revenues increased to $307.7 million, surpassing the Zacks Consensus Estimate of $305 million. The reported tally also comes in higher than the year-ago figure of$296.6 million.

Gross profit increased to $92.1 million from the year-ago quarter’s $87.3 million. Operating income increased to $31.3 million from $27.2 million recorded in the year-ago quarter.

Standard Motor Products, Inc. Price and Consensus

Standard Motor Products, Inc. Price and Consensus

Standard Motor Products, Inc. price-consensus-chart | Standard Motor Products, Inc. Quote

Segmental Results

In the September-end quarter, revenues from the Engine Management segment rose 9.3% year over year to $215.97 million. Operating income was $30.3 million compared with the $21.6 million witnessed in the prior-year quarter. The segment benefited from the Pollak acquisition and the company’s cost-containment efforts.

Revenues in the Temperature Control segment decreased 8.1% year over year to $88.3 million. The segment recorded operating income of $7.5 million compared with $8.6 million registered in the third quarter of 2018.This downside mainly resulted from the dampening impact of tariffs being passed through to customers at the company’s cost.

Revenues in the All Other segment rose to $3.45 million from $2.97recorded million a year ago. The segment reported an operating loss of $5.65 million, wider than the loss of $3.03 million recorded in third-quarter 2018.

Financial Position

Standard Motor had cash and cash equivalents of $13.26 million as of Sep 30, 2019, compared with $11.13 million as of Dec 31, 2018. Other long-term debt was $132,000 as of Sep 30, 2019, compared with $153,000 as of Dec 31, 2018.The debt-to-capital ratio stands at 6.59%.

Dividend Update

The company’s board of directors has approved a quarterly dividend of 23 cents per common share. This dividend will be paid out on Dec 2, to shareholders as of Nov 15, 2019.

Zacks Rank &Other Key Picks

Standard Motor currently carries a Zacks Rank #2 (Buy).

A few other top-ranked stocks in the same sector are Kinross Gold Corporation KGC, sporting a Zacks Rank #1 (Strong Buy), Aaron's, Inc. AAN and Alamos Gold Inc. AGI, both carrying a Zacks Rank of 2, at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Kinross Gold has an expected earnings growth rate of 210% for 2019. The company’s shares have soared85.3% in the past year.

Aaron's has an estimated earnings growth rate of 17.56% for the ongoing year. The company’s shares have surged roughly 62.6% in a year’s time.

Alamos Gold has a projected earnings growth rate of a whopping 340% for the current year. Its shares have gained around 27% over the past year.

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