Send me real-time posts from this site at my email
Zacks

Standard Motors (SMP) Beats on Q4 Earnings, Hikes Dividend

Standard Motor Products Inc. SMP reported fourth-quarter 2021 adjusted earnings of 90 cents per share, beating the Zacks Consensus Estimate of 66 cents.  However, the bottom line declined from the prior-year quarter’s $1.08 due to non-recurring benefits related to the pandemic.

Total revenues jumped 9.6% year over year to $309.9 million, surpassing the Zacks Consensus Estimate of $286.3 million. Gross profit fell to $88.6 million from the year-ago quarter’s $94.1 million. Operating income declined 20.8% to $24.2 million. A surge in various costs, mainly in the Engine Management segment, resulted in a fall in profit margins. A second factor is related to an ongoing mix shift within the division in the specialized original equipment business, which has a different margin profile from the company’s aftermarket business.

The board approved a dividend increase from 25 cents to 27 cents per share, payable on Mar 1, 2022, to stockholders of record on Feb 15, 2022. The company repurchased common shares worth $26.9 million during the year.

Segmental Results

During the reported quarter, revenues from the Engine Management segment totaled $245.5 million, up 6% year over year. The upside was driven by a combination of strong demand, continued success from customer initiatives, new business wins and the positive impact of recent acquisitions and the partial benefit of price increases implemented in the quarter. The operating income was $28.2 million compared with the prior-year quarter’s $39.2 million.

Revenues from the Temperature Control segment rose 26.6% year over year to $60.4 million, led by a surge in sales on account of one of the hottest summers. The segment registered an operating income of $3.5 million, rising from $1 million.

Revenues from the All Other segment came in at $3.9 million, rising from $3.1 million in the prior-year period. The segment reported an operating loss of $7.2 million, marginally wider than the loss of $7.1 million incurred in the corresponding quarter of 2020.

Financial Position

Standard Motor had cash and cash equivalents of $21.7 million as of Dec 31, 2021, compared with $19.5 million as of Dec 31, 2020. Long-term debt was $21,000 compared with $97,000 recorded as of Dec 31, 2020. Net cash provided by operating activities totaled $85.6 million as of Dec 31, 2021, compared with $97.9 million provided in the corresponding period last year.

Zacks Rank & Other Key Picks

Currently, SMP has a Zacks Rank #2 (Buy).    

Better-ranked players in the auto space include Tesla TSLA, Harley-Davidson HOG and LCI Industries LCII, each sporting a Zacks Rank #1 (Strong Buy) currently. You can see the complete list of today’s Zacks #1 Rank stocks here.

Tesla has an expected earnings growth rate of 40.7% for the current year. The Zacks Consensus Estimate for current-year earnings has been revised around 22.3% upward in the past 60 days.

Tesla’s earnings beat the Zacks Consensus Estimate in all of the trailing four quarters. TSLA pulled off a trailing four-quarter earnings surprise of 33.3%, on average. The stock has also rallied 18.5% over a year.

Harley-Davidson has an expected earnings growth rate of 1.9% for the current year. The Zacks Consensus Estimate for current-year earnings has been revised around 21.7% upward in the past 60 days.

Harley-Davison’s earnings beat the Zacks Consensus Estimate in all the trailing four quarters. HOG pulled off a trailing four-quarter earnings surprise of 77.59%, on average. The stock has rallied 12.5% over a year.

LCI Industries has an expected earnings growth rate of 25.6% for the current year. The Zacks Consensus Estimate for current-year earnings has been revised around 13.8% upward in the past 60 days.

LCI Industries’ earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed in one quarter. LCII pulled off a trailing four-quarter earnings surprise of 12.86%, on average. The stock has declined 13.8% over a year.
 


Just Released: Zacks Top 10 Stocks for 2022

In addition to the investment ideas discussed above, would you like to know about our 10 top picks for the entirety of 2022?

From inception in 2012 through 2021, the Zacks Top 10 Stocks portfolios gained an impressive +1,001.2% versus the S&P 500’s +348.7%. Now our Director of Research has combed through 4,000 companies covered by the Zacks Rank and has handpicked the best 10 tickers to buy and hold. Don’t miss your chance to get in…because the sooner you do, the more upside you stand to grab.

See Stocks Now >>

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
 
HarleyDavidson, Inc. (HOG): Free Stock Analysis Report
 
Standard Motor Products, Inc. (SMP): Free Stock Analysis Report
 
Tesla, Inc. (TSLA): Free Stock Analysis Report
 
LCI Industries (LCII): Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research

Welcome! Is it your First time here?

What are you looking for? Select your points of interest to improve your first-time experience:

Apply & Continue