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Standard Motor (SMP) Q1 Earnings Top Estimates But Fall Y/Y
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Standard Motor Products (SMP - Free Report) reported first-quarter 2023 adjusted earnings of 61 cents per share, which declined from 92 cents in the prior-year quarter but beat the Zacks Consensus Estimate of 58 cents. Higher-than-anticipated revenues and operating income from the Vehicle Control unit largely resulted in the outperformance.
Total revenues inched up from $322.8 million in the first quarter of 2022 to $328 million in the quarter under review. The reported figure lagged the consensus mark of $329 million. Gross profit rose to $91.3 million from the year-ago quarter’s $89.8 million. Operating income fell to $20.7 million from $26.9 million reported in the year-ago quarter.
Standard Motor currently carries a Zacks Rank #4 (Sell).
During the reported quarter, revenues from the Vehicle Control segment totaled $184.5 million, up 4.1% year over year and topped the Zacks Consensus Estimate of $180 million. The operating income was $17.4 million, down from the prior-year quarter’s $20.3 million. However, it exceeded the consensus mark of $13.57 million.
During the reported quarter, revenues from the Engineered Solutions segment totaled $71 million, down 2% year over year but topped the Zacks Consensus Estimate of $65 million. Operating income was $5.6 million, down from the prior-year quarter’s $6.3 million but higher than the consensus mark of $3.17 million.
Revenues from the Temperature Control segment came in at $72.4 million, nominally increasing from the year-ago quarter’s $73.1 million. However, the figure lagged the consensus metric of $83 million. The segment registered an operating income of $2.08 million, down from $4.1 million reported in the year-ago period.
Operating loss from the Other segment was $4.36 million, wider than $3.87 million recorded in the year-ago quarter.
Financial Position
Standard Motor had $24.2 million in cash as of Mar 31, 2023, compared with $21.1 million as of Dec 31, 2022. Net cash outflow from operating activities totaled $20.4 million in the first quarter of 2023, lower than $103.9 million in the corresponding period last year. SG&A expenses flared up 10.8% to $69.6 million.
The company approved a quarterly dividend of 29 cents per share, which will be paid out on Jun 1, 2023 to stockholders of record as of May 15, 2023.
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For full-year 2023, the company expects sales to grow by a low single-digit number. The adjusted EBITDA will be nearly 10%.
Peer Releases
Genuine Parts Company (GPC - Free Report) reported first-quarter 2023 adjusted earnings of $2.14 per share, up 15.1% year over year. The bottom line also surpassed the Zacks Consensus Estimate of $2.02 per share. The company reported net sales of $5,765.1 million, outpacing the Zacks Consensus Estimate of $5,686 million. The top line rose 8.9% year over year. The upside resulted from growth in comparable sales across both segments and benefit from acquisitions, partly offset by a net unfavorable impact of foreign currency translation of 2.2%.
Genuine Parts had cash and cash equivalents worth $651.2 million as of Mar 31, 2023. The company exited the first quarter with $2.1 billion in total liquidity, comprising $1.4 billion on the revolving credit facility and the remainder as cash/cash equivalents. Long-term debt increased to $3,094.3 million from $3,076.8 million as of Dec 31, 2022.
LKQ Corporation (LKQ - Free Report) reported adjusted earnings of $1.04 per share in first-quarter 2023, outpacing the Zacks Consensus Estimate of 96 cents. The bottom line also improved 4% year over year. The company registered quarterly revenues of $3,349 million, surpassing the Zacks Consensus Estimate of $3,262 million. The top line remained unchanged from the year-ago level. Meanwhile, parts and services organic revenues increased 7.9% year over year.
LKQ had cash and cash equivalents of $342 million on Mar 31, 2023, up from $278 million recorded as of Dec 31, 2022. The long-term debt (excluding the current portion) amounted to $1,111 million as of Mar 31, 2023, up from $1,091 million recorded on Dec 31, 2022. As of Mar 31, 2023, LKQ’s balance sheet reflected a net debt of $2.7 billion.
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Standard Motor (SMP) Q1 Earnings Top Estimates But Fall Y/Y
Standard Motor Products (SMP - Free Report) reported first-quarter 2023 adjusted earnings of 61 cents per share, which declined from 92 cents in the prior-year quarter but beat the Zacks Consensus Estimate of 58 cents. Higher-than-anticipated revenues and operating income from the Vehicle Control unit largely resulted in the outperformance.
Total revenues inched up from $322.8 million in the first quarter of 2022 to $328 million in the quarter under review. The reported figure lagged the consensus mark of $329 million. Gross profit rose to $91.3 million from the year-ago quarter’s $89.8 million. Operating income fell to $20.7 million from $26.9 million reported in the year-ago quarter.
Standard Motor currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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 Vehicle Control segment totaled $184.5 million, up 4.1% year over year and topped the Zacks Consensus Estimate of $180 million. The operating income was $17.4 million, down from the prior-year quarter’s $20.3 million. However, it exceeded the consensus mark of $13.57 million.
During the reported quarter, revenues from the Engineered Solutions segment totaled $71 million, down 2% year over year but topped the Zacks Consensus Estimate of $65 million. Operating income was $5.6 million, down from the prior-year quarter’s $6.3 million but higher than the consensus mark of $3.17 million.
Revenues from the Temperature Control segment came in at $72.4 million, nominally increasing from the year-ago quarter’s $73.1 million. However, the figure lagged the consensus metric of $83 million. The segment registered an operating income of $2.08 million, down from $4.1 million reported in the year-ago period.
Operating loss from the Other segment was $4.36 million, wider than $3.87 million recorded in the year-ago quarter.
Financial Position
Standard Motor had $24.2 million in cash as of Mar 31, 2023, compared with $21.1 million as of Dec 31, 2022. Net cash outflow from operating activities totaled $20.4 million in the first quarter of 2023, lower than $103.9 million in the corresponding period last year. SG&A expenses flared up 10.8% to $69.6 million.
The company approved a quarterly dividend of 29 cents per share, which will be paid out on Jun 1, 2023 to stockholders of record as of May 15, 2023.
View
For full-year 2023, the company expects sales to grow by a low single-digit number. The adjusted EBITDA will be nearly 10%.
Peer Releases
Genuine Parts Company (GPC - Free Report) reported first-quarter 2023 adjusted earnings of $2.14 per share, up 15.1% year over year. The bottom line also surpassed the Zacks Consensus Estimate of $2.02 per share. The company reported net sales of $5,765.1 million, outpacing the Zacks Consensus Estimate of $5,686 million. The top line rose 8.9% year over year. The upside resulted from growth in comparable sales across both segments and benefit from acquisitions, partly offset by a net unfavorable impact of foreign currency translation of 2.2%.
Genuine Parts had cash and cash equivalents worth $651.2 million as of Mar 31, 2023. The company exited the first quarter with $2.1 billion in total liquidity, comprising $1.4 billion on the revolving credit facility and the remainder as cash/cash equivalents. Long-term debt increased to $3,094.3 million from $3,076.8 million as of Dec 31, 2022.
LKQ Corporation (LKQ - Free Report) reported adjusted earnings of $1.04 per share in first-quarter 2023, outpacing the Zacks Consensus Estimate of 96 cents. The bottom line also improved 4% year over year. The company registered quarterly revenues of $3,349 million, surpassing the Zacks Consensus Estimate of $3,262 million. The top line remained unchanged from the year-ago level. Meanwhile, parts and services organic revenues increased 7.9% year over year.
LKQ had cash and cash equivalents of $342 million on Mar 31, 2023, up from $278 million recorded as of Dec 31, 2022. The long-term debt (excluding the current portion) amounted to $1,111 million as of Mar 31, 2023, up from $1,091 million recorded on Dec 31, 2022. As of Mar 31, 2023, LKQ’s balance sheet reflected a net debt of $2.7 billion.