Standard Motor Products (SMP) Up 1.8% Since Last Earnings Report: Can It Continue?

It has been about a month since the last earnings report for Standard Motor Products (SMP). Shares have added about 1.8% 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 the most recent earnings report in order to get a better handle on the important drivers. Standard Motor Q3 Earnings Beat Expectations, Increase Y/YStandard Motor posted third-quarter 2024 adjusted earnings per share (EPS) of $1.28, which rose from $1.11 reported in the prior-year quarter and beat the Zacks Consensus Estimate of $1.09.Total revenues rose to $399.3 million from $386.4 million reported in the third quarter of 2023. The reported figure also beat the Zacks Consensus Estimate of $396 million. Gross profit rose to $121.4 million from the year-ago quarter’s $114.8 million. Operating income rose to $37.1 million from $34.8 million reported in the year-ago quarter.Segmental ResultsIn the reported quarter, revenues from the Vehicle Control segment totaled $200.9 million, which rose 5.2% year over year and beat our estimate of $193.4 million due to strong demand. Operating income was $16.1 million, down from the prior-year quarter’s $19.4 million.Revenues from the Engineered Solutions segment totaled $72.4 million, up 1% year over year due to new business wins. The metric, however, lagged our estimate of $74.2 million. Operating income was $5.3 million, down from the prior-year quarter’s $7.3 million.Revenues from the Temperature Control segment came in at $125.9 million, which rose from the year-ago quarter’s $123.6 million, but missed our projection of $128.2 million. The segment registered an operating income of $16.4 million, up from $13.2 million reported in the year-ago period.Operating loss from the Other segment was $5.2 million, wider than the loss of $3.6 million recorded in the year-ago quarter.Financial PositionStandard Motor had $26.3 million in cash as of Sept. 30, 2024, compared with $32.5 million as of Dec. 31, 2023.Long-term debt totaled $140.2 million as of Sept. 30, 2024, compared with $151.2 million as of Dec. 31, 2023.Net cash provided by the operating activities totaled $78.2 million at the end of the third quarter of 2024. SG&A expenses rose 1.7% to $81.2 million.The company approved a quarterly dividend of 29 cents per share, which will be paid out on Dec. 2, 2024, to stockholders of record as of Nov. 15, 2024.Reiterated 2024 GuidanceFor 2024, the company expects sales growth to be low- to mid-single digit. Standard Motor expects adjusted EBITDA in the range of 9-9.5% of total revenues.How Have Estimates Been Moving Since Then?It turns out, estimates revision have trended downward during the past month.The consensus estimate has shifted -16.22% due to these changes.VGM ScoresCurrently, Standard Motor Products has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with a D. However, the stock was allocated a grade of A on the value side, putting it in the top quintile for this investment strategy.Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.OutlookEstimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Standard Motor Products has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.Performance of an Industry PlayerStandard Motor Products belongs to the Zacks Automotive - Replacement Parts industry. Another stock from the same industry, LKQ (LKQ), has gained 6.4% over the past month. More than a month has passed since the company reported results for the quarter ended September 2024.LKQ reported revenues of $3.58 billion in the last reported quarter, representing a year-over-year change of +0.5%. EPS of $0.88 for the same period compares with $0.86 a year ago.For the current quarter, LKQ is expected to post earnings of $0.76 per share, indicating a change of -9.5% from the year-ago quarter. The Zacks Consensus Estimate has changed -2.2% over the last 30 days.The overall direction and magnitude of estimate revisions translate into a Zacks Rank #4 (Sell) for LKQ. Also, the stock has a VGM Score of A.Free Today: Profiting from The Future’s Brightest Energy SourceThe demand for electricity is growing exponentially. At the same time, we’re working to reduce our dependence on fossil fuels like oil and natural gas. Nuclear energy is an ideal replacement.Leaders from the US and 21 other countries recently committed to TRIPLING the world’s nuclear energy capacities. This aggressive transition could mean tremendous profits for nuclear-related stocks – and investors who get in on the action early enough.Our urgent report, Atomic Opportunity: Nuclear Energy's Comeback, explores the key players and technologies driving this opportunity, including 3 standout stocks poised to benefit the most.Download Atomic Opportunity: Nuclear Energy's Comeback free today.Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Standard Motor Products, Inc. (SMP): Free Stock Analysis Report LKQ Corporation (LKQ): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks