Standard Motor reported a 50% increase in adjusted earnings per
share to $0.42 in the fourth quarter of 2013, surpassing the Zacks
Consensus Estimate of $0.33. Total revenue increased 13.7% to
$218.7 million, beating the Zacks Consensus Estimate of $193
million. The improvement was due to rising demand from the Engine
Management customers, who are expanding the product lines of their
commercial businesses. Strong brand recognition and benefits from
recent acquisitions will continue to drive revenues. However, we
are concerned about Standard Motor's high dependence on few
customers and price competition. Thus, we are maintaining our
Long Island City, New York-based Standard Motor Products Inc.
(SMP) was founded in 1919 and is one of the leading manufacturers,
distributors and marketers of automotive replacement parts in the
U.S. Presently, the company has three primary operating segments ?
Engine Management (accounted for 72.3% of the company's sales in
2013), Temperature Control (26.7%) and All Other (1%).
The Engine Management division manufactures ignition and
emission parts, ignition wires, battery cables, fuel system parts
and sensors for vehicles. The Temperature Control division
manufactures and remanufactures air conditioning and heating parts,
engine cooling system parts, power window accessories, and
windshield washer system parts.
Standard Motor sells its products primarily to warehouse
distributors like CARQUEST and NAPA Auto Parts, large retail chains
such as Advance Auto Parts, AutoZone, CSK Auto, O'Reilly
Automotive, and Pep Boys, and original equipment manufacturers
(OEMs). The products are sold in the U.S., Canada, Europe, Latin
America and Asia.
Standard Motor Products Inc. (SMP): Read the Full
STANDARD MOTOR (SMP): Free Stock Analysis
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