Standard Motor Products (NYSE:SMP) Releases Quarterly Earnings Results, Beats Estimates By $0.13 EPS

Standard Motor Products (NYSE:SMP – Get Free Report) issued its earnings results on Friday. The auto parts company reported $1.54 EPS for the quarter, beating the consensus estimate of $1.41 by $0.13, Zacks reports. The company had revenue of $512.90 million for the quarter, compared to the consensus estimate of $514.99 million. Standard Motor Products had a net margin of 2.78% and a return on equity of 13.28%.

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

  • Third-quarter performance exceeded expectations, with adjusted sales growth of 2.8%, record adjusted EBITDA of $67 million, and adjusted EPS up 13.2% to $1.54.
  • Strong operating cash flow and inventory reductions helped cut net debt to $381.9 million and improve leverage to 1.8 times EBITDA, ahead of the company’s 2.0-times year-end target.
  • Vehicle Control sales rose 6%, Nissens grew 7.6%, and Engineered Solutions increased 4.9% in the quarter; management also cited potential share gains and favorable customer sell-through in key aftermarket categories.
  • The company is expanding its product portfolio and manufacturing footprint through a Thailand sensor joint venture, North American A/C condensers, and new European categories including ignition coils and air-door actuators, though meaningful revenue impact is expected to take time.
  • Full-year guidance was unchanged at low- to mid-single-digit sales growth and an 11%–12% adjusted EBITDA margin, but management continues to face tariff, inflation, distribution-cost, currency, and geopolitical risks; CFO Nathan Iles is also departing, with longtime former CFO Jim Burke serving as interim replacement.

Standard Motor Products Price Performance

Shares of Standard Motor Products stock traded up $3.74 on Friday, reaching $41.99. 181,185 shares of the stock were exchanged, compared to its average volume of 138,680. The company has a debt-to-equity ratio of 0.73, a quick ratio of 0.80 and a current ratio of 2.00. Standard Motor Products has a one year low of $34.27 and a one year high of $46.00. The firm has a market cap of $938.06 million, a PE ratio of 18.70 and a beta of 0.85. The firm’s 50 day moving average is $37.63 and its 200-day moving average is $38.57.

Standard Motor Products Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Tuesday, September 1st. Shareholders of record on Friday, August 14th were issued a $0.33 dividend. This represents a $1.32 annualized dividend and a yield of 3.1%. The ex-dividend date of this dividend was Friday, August 14th. Standard Motor Products’s dividend payout ratio (DPR) is currently 58.93%.

Insider Buying and Selling at Standard Motor Products

In other news, EVP Dale Burks sold 5,798 shares of the stock in a transaction on Wednesday, August 19th. The stock was sold at an average price of $39.00, for a total value of $226,122.00. Following the completion of the transaction, the executive vice president directly owned 47,657 shares in the company, valued at approximately $1,858,623. This represents a 10.85% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Insiders have sold a total of 18,349 shares of company stock worth $712,146 over the last quarter. Insiders own 5.50% of the company’s stock.

Analyst Upgrades and Downgrades

SMP has been the topic of a number of recent analyst reports. Wall Street Zen raised Standard Motor Products from a “hold” rating to a “buy” rating in a research note on Sunday, August 16th. Weiss Ratings restated a “buy (b-)” rating on shares of Standard Motor Products in a research report on Monday. Finally, Roth Capital reissued a “buy” rating and issued a $54.00 price target on shares of Standard Motor Products in a research note on Monday, October 12th. Two analysts have rated the stock with a Buy rating and one has issued a Hold rating to the stock. Based on data from MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus target price of $54.00.

View Our Latest Stock Report on SMP

Standard Motor Products Company Profile

(Get Free Report)

Standard Motor Products, Inc (NYSE:SMP) manufactures and distributes replacement parts for the automotive aftermarket. The company supplies components used to maintain and repair passenger vehicles, light trucks, and other transportation equipment, serving automotive parts distributors, retailers, repair shops, and vehicle service professionals.

Its product offerings include engine management components such as sensors, ignition parts, fuel system components, and emissions-related products.

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Earnings History for Standard Motor Products (NYSE:SMP)

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