Standard Motor Products Inc.
) reported a 50% rise in adjusted earnings per share to 42 cents
in the fourth quarter of 2013 from 28 cents in the year-ago
quarter. Earnings per share surpassed the Zacks Consensus
Estimate of 33 cents. Profits went up 49.2% to $9.7 million from
$6.5 million in the year-ago quarter.
Including non-operational gains and losses, earnings on a
reported basis amounted to $9.4 million or 40 cents per share,
compared with $6.3 million or 27 cents in the prior-year quarter.
Total revenue increased 13.7% to $218.7 million, beating the
Zacks Consensus Estimate of $193 million. The improvement was
attributable to rising demand from the Engine Management
customers who are expanding the product lines of their commercial
Gross profit improved 15.2% to 66.7 million or 30.5% of sales
from $58 million or 30.1% of sales in the fourth quarter of 2012.
Operating income increased 27.2% to $15.7 million from $12.4
million in the fourth quarter of 2012. Operating margin improved
to 7.2% from 6.4% in the year-ago quarter.
Fiscal 2013 Performance
Standard Motor's adjusted earnings increased 26.8% to $2.32 per
share for full-year 2013 from $1.83 in 2012, exceeding the Zacks
Consensus Estimate of $2.24. Revenues for full-year 2013 rose
3.7% to $983.7 million from $948.9 million in 2012.
Revenues from the Engine Management segment climbed 14.4% to
$175.7 million. Operating profit rose 32.9% to $24.3 million from
$18.3 million in the corresponding quarter last year.
Revenues from the Temperature Control segment improved 8.7% to
$38.3 million. The segment recorded an operating loss of $3.8
million compared with $1.9 million in the fourth quarter of 2012.
Revenues from All Other segment increased 34.8% to $4.7 million
from $3.5 million a year ago. The segment recorded an operating
loss of $4.2 million against $3.6 million in the fourth quarter
Standard Motor had cash balance of $5.6 million as of Dec 31,
2013, compared with $13.1 million on Dec 31, 2012. Long-term debt
of the company was $75,000 as of Dec 31, 2013, down from $195,000
as of Dec 31, 2012.
In fiscal 2013, the company had cash flow of $57.6 million from
operating activities versus $93.6 million in the year-ago period.
Capital expenditures decreased to $11.4 million from $11.8
million a year ago.
On Feb 3, 2014, Standard Motor announced an increase in the
quarterly dividend to 13 cents per share from 11 cents. The
dividend is payable on Mar 3, 2014, to shareholders of record as
of Feb 18, 2014.
The board of directors of Standard Motor authorized a $10 million
increase in the company's stock repurchase program. This
repurchase is an addition to the $6 million repurchase authorized
in Feb 2013, which has been utilized completely. The repurchase
will be financed by the revolving credit facility of the company.
Standard Motor completed the acquisition of the assets of
Pensacola Fuel Injection for around $12.2 million in Jan 2014.
Based in Florida, Pensacola remanufactures and distributes a
variety of diesel injectors, diesel pumps and turbo chargers. The
company expects that mounting diesel equipped light vehicles
demand in North America will boost demand for diesel injectors
and pumps. This will in turn boost the company's earnings.
Standard Motor expects low to mid single digit growth rate in
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. Standard Motor currently
retains a Zacks Rank #3 (Hold).
Other well-performing stocks worth considering include
Motorcar Parts of America Inc.
Remy International, Inc.
Dorman Products, Inc.
). While Motorcar and Remy sport a Zacks Rank #1 (Strong Buy),
Dorman carries a Zacks Rank #2 (Buy).
DORMAN PRODUCTS (DORM): Free Stock Analysis
MOTORCAR PARTS (MPAA): Free Stock Analysis
REMY INTL INC (REMY): Get Free Report
STANDARD MOTOR (SMP): Free Stock Analysis
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