Standard Motor Products (NYSE:SMP) Issues Quarterly Earnings Results

Standard Motor Products (NYSE:SMP) released its earnings results on Tuesday. The auto parts company reported $1.40 earnings per share for the quarter, beating the consensus estimate of $1.39 by $0.01, Zacks reports. The company had revenue of $526.72 million for the quarter, compared to analysts’ expectations of $511.68 million. Standard Motor Products had a return on equity of 13.28% and a net margin of 2.78%.During the same quarter in the previous year, the business posted $1.13 EPS.

Here are the key takeaways from Standard Motor Products’ conference call:

• Strong quarterly performance: Adjusted sales increased 6.7% excluding tariff-refund accounting effects, adjusted EBITDA reached a record $63.5 million, and adjusted diluted EPS rose 8.6% to $1.40.
• Temperature Control sales grew 15.7% and Engineered Solutions sales rose 16.8%, while Nissens sales increased 4.8% with continued gains in engine-efficiency products and improving European air-conditioning demand.
• Cash generation and deleveraging improved significantly, with $58.3 million of operating cash flow in the first half, lower inventory, net debt of $510.2 million, and leverage at 2.5 times EBITDA; management remains on track for its 2.0-times target by year-end 2026.
• Full-year guidance was unchanged at low- to mid-single-digit sales growth and an 11%–12% adjusted EBITDA margin, but management expects tougher second-half comparisons, less foreign-exchange benefit, ongoing distribution costs from the new warehouse, and continued tariff-related margin pressure.
• The company acquired a 50% stake in Techstrong’s Thailand sensor operation, which management expects to strengthen supply-chain control, support low-cost manufacturing, and reduce reliance on China while enabling further Vehicle Control growth.

Standard Motor Products Stock Performance

SMP traded up $0.23 during trading on Thursday, hitting $39.81. The stock had a trading volume of 59,459 shares, compared to its average volume of 131,754. The firm has a market cap of $886.28 million, a PE ratio of 17.78 and a beta of 0.82. The company has a 50 day simple moving average of $38.85 and a 200-day simple moving average of $38.85. Standard Motor Products has a 12 month low of $34.27 and a 12 month high of $46.00. The company has a current ratio of 2.00, a quick ratio of 0.78 and a debt-to-equity ratio of 0.73.

Standard Motor Products Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Tuesday, September 1st. Investors of record on Friday, August 14th will be paid a $0.33 dividend. The ex-dividend date is Friday, August 14th. This represents a $1.32 dividend on an annualized basis and a yield of 3.3%. Standard Motor Products’s dividend payout ratio (DPR) is presently 64.71%.

Insider Buying and Selling at Standard Motor Products

In other Standard Motor Products news, VP Ray Nicholas sold 5,822 shares of the firm’s stock in a transaction that occurred on Monday, June 8th. The stock was sold at an average price of $39.75, for a total value of $231,424.50. Following the sale, the vice president owned 35,327 shares of the company’s stock, valued at $1,404,248.25. This trade represents a 14.15% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through this link. Corporate insiders own 5.50% of the company’s stock.

Hedge Funds Weigh In On Standard Motor Products

Institutional investors and hedge funds have recently bought and sold shares of the stock. Dimensional Fund Advisors LP boosted its holdings in Standard Motor Products by 0.4% in the 4th quarter. Dimensional Fund Advisors LP now owns 1,386,382 shares of the auto parts company’s stock valued at $51,089,000 after purchasing an additional 4,927 shares during the period. State Street Corp grew its position in Standard Motor Products by 0.6% during the fourth quarter. State Street Corp now owns 826,471 shares of the auto parts company’s stock worth $30,455,000 after buying an additional 5,319 shares in the last quarter. Geode Capital Management LLC increased its stake in Standard Motor Products by 0.3% during the fourth quarter. Geode Capital Management LLC now owns 503,039 shares of the auto parts company’s stock valued at $18,539,000 after acquiring an additional 1,268 shares during the period. Charles Schwab Investment Management Inc. increased its stake in Standard Motor Products by 14.4% during the fourth quarter. Charles Schwab Investment Management Inc. now owns 412,671 shares of the auto parts company’s stock valued at $15,207,000 after acquiring an additional 51,918 shares during the period. Finally, Nuveen LLC raised its holdings in Standard Motor Products by 16.3% in the 4th quarter. Nuveen LLC now owns 359,189 shares of the auto parts company’s stock valued at $13,236,000 after acquiring an additional 50,261 shares in the last quarter. Institutional investors own 81.26% of the company’s stock.

Wall Street Analysts Forecast Growth

A number of equities research analysts have issued reports on the stock. Weiss Ratings upgraded shares of Standard Motor Products from a “hold (c+)” rating to a “buy (b-)” rating in a research report on Tuesday, July 28th. Zacks Research lowered Standard Motor Products from a “strong-buy” rating to a “hold” rating in a report on Tuesday, May 12th. Two analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company. According to MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average target price of $49.00.

About Standard Motor Products

Standard Motor Products, Inc, headquartered in Long Island City, New York, is a leading manufacturer and distributor of aftermarket and original equipment automotive parts. Since its founding in 1919, the company has focused on engineering, testing, and supplying ignition and temperature management products for passenger cars and light trucks. Its product lineup includes ignition coils, spark plug wires, sensors, switches, heating and air conditioning controls, and related electronic components.

The company operates through two primary segments: Engine Management and Temperature Control.