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Standard Motor (SMP) Q2 Earnings Miss Estimates, Down Y/Y
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Share price of Standard Motor Products Inc. (SMP - Free Report) declined 4.6% to $50.38 on Jul 31, as the company missed earnings estimate.
Second-quarter 2017 adjusted earnings of 81 cents per share missed the Zacks Consensus Estimate of 99 cents. Also, it came lower than the prior-year quarter figure of 88 cents per share.
Earnings from continuing operations, on a reported basis, amounted to $18.3 million or 78 cents per share, declining from $19.9 million or 86 cents in the prior-year quarter.
Total revenue also increased to $312.7 million from $289 million a year ago, surpassing the Zacks Consensus Estimate of $311 million.
Gross profit in the second quarter of 2017 increased to $90.7 million from $87.1 million in the year-ago quarter. Operating income declined to $29.7 million from $31.8 million in the year-ago quarter.
Segment Results
Revenues at the Engine Management segment increased to $223.3 million in the reported quarter from $198.8 million a year ago. Operating profit was $27.4 million (12.3% of sales) compared with $30.6 million (15.4% of sales) in the prior-year quarter.
Revenues at the Temperature Control segment slightly decreased to $87.4 million from $87.5 million a year ago. The segment recorded an operating profit of $8.6 million (9.8% of sales) compared with a profit of $6.3 million (7.2% of sales) in the second quarter of 2016.
Revenues at the All Other segment decreased to $1.99 million from $2.63 million a year ago. The segment registered an operating loss of $5.4 million, wider than $4.6 million in the second quarter of 2016.
Financial Position
Standard Motor had cash and cash equivalent of $16.4 million as of Jun 30, 2017 compared with $12.4 million as of Jun 30, 2016. Long-term debt of the company was $101,000 as of Jun 30, 2017, compared with $120,000 as of Dec 31, 2016.
Business Update
Along with the integration of the General Cable North American ignition wire acquisition, the company has begun transferring the entire production from the acquired plant in Nogales, Mexico to Reynosa, Mexico.
Also, the company started to move its electronics plant in Orlando, Florida, to Independence, Kansas.
Dividend
Standard Motor’s board approved a dividend of 19 cents per share to be paid on Sep 1 to stockholders of record on Aug 15.
Zacks Rank & Key Picks
Currently, Standard Motor has a Zacks Rank #3 (Hold).
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Image: Bigstock
Standard Motor (SMP) Q2 Earnings Miss Estimates, Down Y/Y
Share price of Standard Motor Products Inc. (SMP - Free Report) declined 4.6% to $50.38 on Jul 31, as the company missed earnings estimate.
Second-quarter 2017 adjusted earnings of 81 cents per share missed the Zacks Consensus Estimate of 99 cents. Also, it came lower than the prior-year quarter figure of 88 cents per share.
Earnings from continuing operations, on a reported basis, amounted to $18.3 million or 78 cents per share, declining from $19.9 million or 86 cents in the prior-year quarter.
Total revenue also increased to $312.7 million from $289 million a year ago, surpassing the Zacks Consensus Estimate of $311 million.
Gross profit in the second quarter of 2017 increased to $90.7 million from $87.1 million in the year-ago quarter. Operating income declined to $29.7 million from $31.8 million in the year-ago quarter.
Segment Results
Revenues at the Engine Management segment increased to $223.3 million in the reported quarter from $198.8 million a year ago. Operating profit was $27.4 million (12.3% of sales) compared with $30.6 million (15.4% of sales) in the prior-year quarter.
Revenues at the Temperature Control segment slightly decreased to $87.4 million from $87.5 million a year ago. The segment recorded an operating profit of $8.6 million (9.8% of sales) compared with a profit of $6.3 million (7.2% of sales) in the second quarter of 2016.
Revenues at the All Other segment decreased to $1.99 million from $2.63 million a year ago. The segment registered an operating loss of $5.4 million, wider than $4.6 million in the second quarter of 2016.
Financial Position
Standard Motor had cash and cash equivalent of $16.4 million as of Jun 30, 2017 compared with $12.4 million as of Jun 30, 2016. Long-term debt of the company was $101,000 as of Jun 30, 2017, compared with $120,000 as of Dec 31, 2016.
Business Update
Along with the integration of the General Cable North American ignition wire acquisition, the company has begun transferring the entire production from the acquired plant in Nogales, Mexico to Reynosa, Mexico.
Also, the company started to move its electronics plant in Orlando, Florida, to Independence, Kansas.
Dividend
Standard Motor’s board approved a dividend of 19 cents per share to be paid on Sep 1 to stockholders of record on Aug 15.
Zacks Rank & Key Picks
Currently, Standard Motor has a Zacks Rank #3 (Hold).
Some better-ranked companies in the auto space are Allison Transmission Holdings (ALSN - Free Report) , Volkswagen AG and Daimler AG , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Allison Transmission has expected long-term growth rate of 11%.
Volkswagen has expected growth rate of around 17.3% in the long run.
Daimler has expected long-term growth rate of 2.8%.
Standard Motor Products, Inc. Price, Consensus and EPS Surprise
Standard Motor Products, Inc. Price, Consensus and EPS Surprise | Standard Motor Products, Inc. Quote
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
It's not the one you think.
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