Standard Motor Products Inc.
) 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.
Including non-operational gains and losses, earnings on a
reported basis amounted to $17.7 million or 76 cents per share,
compared with $17.4 million or 76 cents in the year-ago
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.
Gross profit improved 2.9% to $80.1 million or 30.3% of sales
from $77.8 million or 28.2% of sales in the third quarter of
Operating income increased 4.6% to $27.9 million from $26.7
million in the third quarter of 2012. Operating margin improved
to 10.6% from 9.7% in the year-ago quarter.
Revenues from the
segment rose 1.2% to $177.9 million. Operating profit grew 23.9%
to $26.5 million from $21.4 million in the corresponding quarter
Revenues from the
segment declined 10.9% to $84.8 million due to the unfavorable
impact of weather conditions. The company recorded an operating
income of $7.5 million compared with $9.1 million in the third
quarter of 2012.
segment declined 72.1% to $1.4 million from $5 million a year
Standard Motor had cash balance of $10.1 million as of Sep 30,
2013, compared with $13.1 million on Dec 31, 2012. Long-term debt
of the company was $105,000 as of Sep 30, 2013, down from
$195,000 as of Dec 31, 2012.
In the first nine months of fiscal 2013, the company had cash
flow of $33.7 million from operating activities compared with
$62.9 million in the year-ago period. Capital expenditures
increased to $8.5 million from $8 million a year ago.
Standard Motor announced a quarterly dividend of 11 cents per
share, payable on Dec 2, 2013, to shareholders of record as of
Nov 15, 2013.
Standard Motor, based in Long Island City, New York, is one of
the leading manufacturers, distributors and marketers of
automotive replacement parts in the U.S. The company enjoys
strong brand recognition globally and a less cyclical end-market
within the auto and auto parts industry.
However, we are concerned about Standard Motor's high
dependence on some major customers like
Advance Auto Parts Inc.
O'Reilly Automotive Inc.
) as well as the price competition prevailing in the market.
Another player in the automotive replacement parts industry,
Genuine Parts Company
) reported a 1% year over year increase in earnings per share to
$1.12 in the third quarter of 2013 from $1.11. However, the
reported earnings missed the Zacks Consensus Estimate by 8
Standard Motor currently retains a Zacks Rank #1 (Strong
ADVANCE AUTO PT (AAP): Free Stock Analysis
GENUINE PARTS (GPC): Free Stock Analysis
O REILLY AUTO (ORLY): Free Stock Analysis
STANDARD MOTOR (SMP): Free Stock Analysis
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