Standard Motor Product Inc. ( SMP ) reported a
staggering 82.6% rise in adjusted earnings per share to 42 cents in
the first quarter of 2013 from 23 cents in the year-ago quarter.
Earnings per share also surpassed the Zacks Consensus Estimate of
32 cents. Profits went up 79.6% to $9.7 million from $5.4 million
in the year-ago quarter.ADVANCE AUTO PT (AAP): Free Stock Analysis
ReportGENUINE PARTS (GPC): Free Stock Analysis ReportLKQ CORP (LKQ): Free Stock Analysis ReportSTANDARD MOTOR (SMP): Free Stock Analysis
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Total revenue increased 9% to $230.7 million, missing the Zacks
Consensus Estimate of $234.0 million. The year-over-year growth in
revenues was attributable to the positive impact from the company's
acquisitions and strong performance of the company's Temperature
Gross profit improved 20.7% to $65.8 million or 28.5% of sales
from $54.6 million or 25.8% in the first quarter of 2012. The rise
in profit was driven by higher in-house production, reduced
purchase costs, and expansion of production in low-cost
manufacturing operations in Mexico and Poland.
Operating income increased 65.2% to $16.0 million from $9.7
million in the first quarter of 2012. Operating margin was 6.9%
versus 4.6% in the year-ago quarter.
Revenues from the Engine Management segment rose 7.7% to $175.5
million, driven by increased pipeline orders. Operating profit grew
51.1% to $21.2 million from $14.0 million in the corresponding
quarter last year.
Revenues from the Temperature Control segment climbed 16.4% to
$52.7 million, due to favorable impacts from the acquisition of
Compressor Works. The company recorded an operating loss of $373.0
million compared with an operating profit of $67.0 million in the
first quarter of 2012.
Standard Motors had cash balance of $9.7 million as of Mar 31,
2013, compared with $13.1 million in Dec 31, 2012. Long-term debt
of the company was $163 thousand as of Mar 31, 2013, down from $195
thousand as of Dec 31, 2012.
In the first quarter of fiscal 2013, the company had cash outflow
of $26.8 million from operating activities compared with $9.0
million in the year-ago period. Capital expenditures increased to
$2.6 million from $2.4 million a year ago.
The company will be paying a quarterly dividend of 11 cents per
share on the outstanding common stock on Jun 3, 2013 to
shareholders of record as of May 15, 2012.
Standard Motor, based in Long Island City, N.Y, is one of the
leading manufacturers, distributors and marketers of automotive
replacement parts in the U.S. Further, it enjoys strong brand
We believe that Standard Motor will benefit from its strong brand
recognition, less cyclical end-market and efficient debt management
measures and positive impact from the recent acquisitions. However,
we are concerned about the company's high dependence on its
customers including Advance Auto Parts Inc. ( AAP ) for its business.
Currently, the company retains a Zacks Rank #1 (Strong Buy).
Some other stocks that are performing well in the industry where
Standard Motor operates include Genuine Parts
Company ( GPC ) with a
Zacks Rank #1 (Strong Buy), and LKQ Corp. ( LKQ ) carrying a Zacks
Rank #2 (Buy).