Yahoo Finance Why Is Standard Motor Products (SMP) Up 0.2% Since Last Earnings Report?
It has been about a month since the last earnings report for Standard Motor Products (SMP). Shares have added about 0.2% in that time frame, underperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Standard Motor Products due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Standard Motor Q1 Earnings Top Estimates But Fall Y/Y
Standard Motor Products 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.
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.
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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%.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended upward during the past month.
VGM Scores
At this time, Standard Motor Products has a poor Growth Score of F, however its Momentum Score is doing a lot better with a C. However, the stock was allocated a grade of A on the value side, putting it in the top 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Standard Motor Products has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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Standard Motor Products, Inc. (SMP) : Free Stock Analysis Report
