Standard Motor Announces Asset Buy - Analyst Blog

By
A A A

Standard Motor Products Inc. ( SMP ) announced the acquisition of all the assets of Pensacola, Fla.-based Pensacola Fuel Injection, barring the retail segment, which will be retained by the current owners of the company. The deal worth $12.2 million is expected to boost Standard Motor's earnings, excluding one-time integration costs, from the first year itself.

Pensacola Fuel Injection is a privately-held company that remanufactures and distributes diesel injectors, diesel pumps and turbo chargers. Standard Motor used to procure these products from the company earlier.

The acquisition will, therefore, reduce Standard Motor's raw materials costs while expanding its product portfolio. The company expects the expanded portfolio to be beneficial as the requirement for diesel equipped light vehicles is projected to rise in North America. The growth will likely be fueled by the increasing demand for cars with better fuel mileage.


The automotive replacement parts manufacturing and distributing company reported an 8.2% rise in adjusted earnings per share to 79 cents in the third quarter of 2013 from 73 cents in the year-ago quarter. Earnings per share surpassed the Zacks Consensus Estimate of 76 cents. Profits went up 8.9% to $18.3 million from $16.8 million in the year-ago quarter.

Total revenue declined 4.3% to $264.2 million, missing the Zacks Consensus Estimate of $279 million. The decline was attributable to lower revenues from Temperature Control and All Other segments, partially offset by better performance in the Engine Management segment.

Standard Motor currently carries a Zacks Rank #3 (Hold). Some better-ranked companies in the same industry include Genuine Parts Company ( GPC ), Motorcar Parts of America Inc. ( MPAA ) and LKQ Corp. ( LKQ ). MPAA sports a Zacks Rank #1 (Strong Buy), while GPC and LKQ carry a Zacks Rank #2 (Buy).



GENUINE PARTS (GPC): Free Stock Analysis Report

LKQ CORP (LKQ): Free Stock Analysis Report

MOTORCAR PARTS (MPAA): Free Stock Analysis Report

STANDARD MOTOR (SMP): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Business , Stocks

Referenced Stocks: GPC , LKQ , MPAA , SMP

Zacks.com

Zacks.com

More from Zacks.com:

Related Videos

Don't Pay Up to Play REITs
Don't Pay Up to Play REITs          

Stocks

Referenced

Most Active by Volume

100,376,898
  • $17.62 ▲ 0.51%
83,231,837
  • $25.62 ▲ 1.91%
75,739,329
  • $111.78 ▼ 0.77%
65,297,937
  • $36.37 ▼ 1.76%
59,053,093
  • $47.66 ▲ 0.29%
53,482,350
  • $2.59 ▼ 0.38%
51,504,284
  • $7.34 ▲ 2.37%
51,434,656
  • $8.14 ▲ 6.96%
As of 12/19/2014, 04:15 PM


Find a Credit Card

Select a credit card product by:
Select an offer:
Search
Data Provided by BankRate.com