Standard Motor Product Inc.
) reported an 18.6% rise in adjusted earnings per share to 70
cents in the second quarter of 2013 from 59 cents in the year-ago
quarter. However, earnings per share missed the Zacks Consensus
Estimate of 76 cents. Profits went up 20.6% to $16.4 million from
$13.6 million in the year-ago quarter.
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Total revenue increased 0.5% to $270.1 million, missing the Zacks
Consensus Estimate of $283 million. The marginal rise in revenues
was attributable to decrease in revenues from Temperature Control
segment, partially offset by better performance in the Engine
Gross profit improved 12.2% to $77.8 million or 28.8% of sales
from $69.3 million or 25.8% of sales in the second quarter of
2012, driven by expansion of the low-cost manufacturing
operations together with benefits from recent acquisitions.
Operating income increased 19.7% to $27.2 million from $22.7
million in the second quarter of 2012. Operating margin improved
to 10.1% from 8.4% in the year-ago quarter.
Revenues from the
segment rose 5.4% to $182.1 million. Operating profit grew 38.1%
to $24.8 million from $17.9 million in the corresponding quarter
Revenues from the
segment declined 6.9% to $86.7 million due to unfavorable weather
impacts. The company recorded an operating income of $6.9 million
compared with $7.7 million in the second quarter of 2012.
Revenues from all other segment declined 55.7% to $1.4 million
from $3.2 million year ago.
Standard Motors had cash balance of $12.3 million as of Jun 30,
2013, compared with $13.1 million on Dec 31, 2012. Long-term debt
of the company was $133,000 as of Jun 30, 2013, down from
$195,000 as of Dec 31, 2012.
In the second quarter of fiscal 2013, the company had cash
outflow of $12.4 million from operating activities compared with
cash inflow of $21.2 million in the year-ago period. Capital
expenditures increased to $5.5 million from $5.3 million a year
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
recognition globally and a less cyclical end-market within the
auto and auto parts industry.
However, we are concerned about the company's high dependence on
its customers including
Advance Auto Parts Inc.
) for its business. The company retains a Zacks Rank #1 (Strong
Some other stocks that are performing well in the industry where
Standard Motor operates include
Motorcar Parts of America Inc.
), both are Zacks Rank #2 (Buy) stocks.