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Standard Motor (SMP) Q2 Earnings & Sales Crush Estimates, Up Y/Y

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Standard Motor Products, Inc. (SMP - Free Report) reported adjusted earnings of $1.26 per share for second-quarter 2021, beating the Zacks Consensus Estimate of 67 cents. The bottom line also came in higher than the prior-year quarter’s 52 cents per share. Robust performance of both its major segments — Engine Management and Temperature Control — boosted the quarterly results.

Total revenues jumped 38% year over year to $342.1 million, surpassing the Zacks Consensus Estimate of $267 million. Gross profit surged to $99.3 million from the year-ago quarter’s $64.4 million. Operating income skyrocketed 130.5%, year on year, to $36.9 million.

The board approved a dividend payout of 25 cents per share, payable on Sep 1, to stockholders as of Aug 16, 2021.

Segmental Results

During the June-end quarter, revenues from the Engine Management segment totaled $233.2 million, up 35% year over year. Operating income was $30.4 million compared with the prior-year quarter’s $16.7 million. This upside was driven by successful customer initiatives, new business wins, contributions from acquisitions and overall strong demand.

Revenues in the Temperature Control segment surged 47% year over year to $106.5 million. The segment registered an operating income of $13.2 million compared with the $4 million witnessed in the year-ago period.

Revenues in the All Other segment came in at $2.4 million, roughly at par with the revenue figure recorded in the prior-year period. However, the segment reported an operating loss of $5.9 million, wider than the loss of $4.7 million posted in the corresponding quarter of 2020.

Financial Position

Standard Motor — whose peers include LKQ Corp. (LKQ - Free Report) , Genuine Parts (GPC - Free Report) and Dorman Products (DORM - Free Report) — had cash and cash equivalents of $27.4 million as of Jun 30, 2021 compared with $19.5 million as of Dec 31, 2020. Long-term debt was $80,000 compared with $97,000 recorded as of Dec 31, 2020. For the six-month period ended Jun 30, 2021, net cash provided by operating activities totaled $23.2 million, compared with the $885,000 used in the corresponding period last year. Capex for the quarter amounted to $6.7 million, higher than the $4.6 million recorded in the year-ago quarter.

During the reported quarter, Standard Motor acquired 100% capital stock of Trumpet Holdings, commonly referred as Trombetta. The transaction, worth $108 million, was funded by Standard Motor through cash borrowings under its revolving credit facility.

Standard Motor currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.


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