We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Standard Motor's (SMP) Q4 Earnings Beat, Revenues Decline Y/Y
Read MoreHide Full Article
Standard Motor Products (SMP - Free Report) reported fourth-quarter 2022 adjusted earnings of 69 cents per share, beating the Zacks Consensus Estimate of 52 cents. Higher-than-anticipated operating income from the Engine Management resulted in the outperformance. But the bottom line declined 23% from the prior-year quarter’s 90 cents a share.
Total revenues fell 0.5% year over year to $308.2 million and also fell short of the Zacks Consensus Estimate of $337 million. However, gross profit rose to $89.6 million from the year-ago quarter’s $88.7 million. Operating income fell to $15.7 million, down from $24.2 million reported in the year-ago quarter.
Standard Motor Products, Inc. Price, Consensus and EPS Surprise
During the reported quarter, revenues from the Engine Management segment totaled $242.4 million, down 1.3% year over year. The figure also lagged the Zacks Consensus Estimate of $255 million. The operating income was $26.5 million, down from the prior-year quarter’s $28.3 million but it crossed the consensus mark of $19.42 million.
Revenues from the Temperature Control segment rose 5% year over year to $63.5 million but the figure lagged the consensus metric of $79 million. The segment registered an operating income of $2.2 million, down from $3.5 million and lagging the consensus mark of $2.64 million.
Revenues from the All Other segment came in at $2.29 million, down from $3.92 million recorded in the year-ago quarter and missing the consensus mark of $3.22 million. The segment reported an operating loss of $4.2 million, narrower than a loss of $7.2 million recorded in the year-ago quarter and the Zacks Consensus Estimate of a loss of $4.69 million.
The company also announced segment reporting changes beginning this year. Notably, SMP has introduced one new operating segment and renamed one of its existing segments. The new segment, called SMP Engineering Solutions, will focus on custom-designed parts for vehicles and OEMs. The Engine Management Segment will now be known as Vehicle Control to precisely reflect the products and categories that SMP has to offer.
Financial Position
Standard Motor had $21.2 million in cash as of Dec 31, 2022, compared with $21.8 million as of Dec 31, 2021. Net cash outflow from operating activities totaled $27.5 million in the fourth quarter of 2022 compared to $85.6 million in net cash inflow from operating activities in the corresponding period last year. SG&A expenses flared up 12% to $72 million.
Outlook
For full-year 2023, the company expects sales to grow by a low single-digit number. The adjusted EBITDA will be nearly 10%.
Zacks Rank & Key Picks
SMP currently has a Zacks Rank #3 (Hold)
A few better-ranked players in the auto space include Bayerische Motoren Werke (BAMXF - Free Report) , Wabash National (WNC - Free Report) and Modine Manufacturing (MOD - Free Report) , all sporting a Zacks Rank #1 (Strong Buy).
Bayerische is a multi-brand automobile manufacturer that focuses on the premium segments of the worldwide automobile and motorcycle markets and has three brands: BMW, MINI and Rolls-Royce. The Zacks Consensus Estimate for BAMXF’s 2023 sales implies year-over-year growth of 1.88%.
Wabash is one of the leading manufacturers of semi-trailers in North America. The Zacks Consensus Estimates for WNC’s 2023 sales and earnings imply year-over-year growth of 13.06% and 24%, respectively.
Modine operates primarily in a single industry consisting of the manufacture and sale of heat transfer equipment. The Zacks Consensus Estimates for MOD’s 2023 sales and earnings imply year-over-year growth of 11.43% and 43.09%, respectively.
Image: Bigstock
Standard Motor's (SMP) Q4 Earnings Beat, Revenues Decline Y/Y
Standard Motor Products (SMP - Free Report) reported fourth-quarter 2022 adjusted earnings of 69 cents per share, beating the Zacks Consensus Estimate of 52 cents. Higher-than-anticipated operating income from the Engine Management resulted in the outperformance. But the bottom line declined 23% from the prior-year quarter’s 90 cents a share.
Total revenues fell 0.5% year over year to $308.2 million and also fell short of the Zacks Consensus Estimate of $337 million. However, gross profit rose to $89.6 million from the year-ago quarter’s $88.7 million. Operating income fell to $15.7 million, down from $24.2 million reported in the year-ago quarter.
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
During the reported quarter, revenues from the Engine Management segment totaled $242.4 million, down 1.3% year over year. The figure also lagged the Zacks Consensus Estimate of $255 million. The operating income was $26.5 million, down from the prior-year quarter’s $28.3 million but it crossed the consensus mark of $19.42 million.
Revenues from the Temperature Control segment rose 5% year over year to $63.5 million but the figure lagged the consensus metric of $79 million. The segment registered an operating income of $2.2 million, down from $3.5 million and lagging the consensus mark of $2.64 million.
Revenues from the All Other segment came in at $2.29 million, down from $3.92 million recorded in the year-ago quarter and missing the consensus mark of $3.22 million. The segment reported an operating loss of $4.2 million, narrower than a loss of $7.2 million recorded in the year-ago quarter and the Zacks Consensus Estimate of a loss of $4.69 million.
The company also announced segment reporting changes beginning this year. Notably, SMP has introduced one new operating segment and renamed one of its existing segments. The new segment, called SMP Engineering Solutions, will focus on custom-designed parts for vehicles and OEMs. The Engine Management Segment will now be known as Vehicle Control to precisely reflect the products and categories that SMP has to offer.
Financial Position
Standard Motor had $21.2 million in cash as of Dec 31, 2022, compared with $21.8 million as of Dec 31, 2021. Net cash outflow from operating activities totaled $27.5 million in the fourth quarter of 2022 compared to $85.6 million in net cash inflow from operating activities in the corresponding period last year. SG&A expenses flared up 12% to $72 million.
Outlook
For full-year 2023, the company expects sales to grow by a low single-digit number. The adjusted EBITDA will be nearly 10%.
Zacks Rank & Key Picks
SMP currently has a Zacks Rank #3 (Hold)
A few better-ranked players in the auto space include Bayerische Motoren Werke (BAMXF - Free Report) , Wabash National (WNC - Free Report) and Modine Manufacturing (MOD - Free Report) , all sporting a Zacks Rank #1 (Strong Buy).
Bayerische is a multi-brand automobile manufacturer that focuses on the premium segments of the worldwide automobile and motorcycle markets and has three brands: BMW, MINI and Rolls-Royce. The Zacks Consensus Estimate for BAMXF’s 2023 sales implies year-over-year growth of 1.88%.
Wabash is one of the leading manufacturers of semi-trailers in North America. The Zacks Consensus Estimates for WNC’s 2023 sales and earnings imply year-over-year growth of 13.06% and 24%, respectively.
Modine operates primarily in a single industry consisting of the manufacture and sale of heat transfer equipment. The Zacks Consensus Estimates for MOD’s 2023 sales and earnings imply year-over-year growth of 11.43% and 43.09%, respectively.
You can see the complete list of today’s Zacks #1 Rank stocks here.