Standard Motor Products Inc.
) reported an 8.6% rise in adjusted earnings per share to 76 cents
in the second quarter of 2014 from 70 cents in the year-ago
quarter. However, earnings missed the Zacks Consensus Estimate of
79 cents. Profits went up 8.4% to $17.7 million from $16.4 million
in the year-ago quarter.
Including litigation charge and other non-operational gains and
losses, earnings on a reported basis amounted to $11.2 million or
48 cents per share, compared with $16.4 million or 71 cents in the
Total revenue increased 0.9% to $272.5 million, missing the Zacks
Consensus Estimate of $290 million.
Gross profit decreased to $77.4 million or 28.4% of sales from
$77.8 million or 28.8% of sales in the second quarter of 2013.
Meanwhile, operating income improved 4.9% to $28.6 million from
$27.2 million in the second quarter of 2013. The company is
actively focusing on reducing selling general and administrative
(SG&A) expenses, along with attaining better efficiency and
implementing cost-control initiatives.
Standard Motor Products, Inc - Earnings
Surprise | FindTheBest
Revenues at the Engine Management segment climbed 1.2% to $184.2
million. Operating profit rose 11.5% to $27.6 million or 15% of
sales from $24.8 million or 13.6% of sales in the corresponding
quarter last year. Gross margin increased to 30.4% from 29.9% a
year ago, driven by higher production, savings in purchasing, and
benefits from recent acquisitions.
Revenues at the Temperature Control segment declined 1.2% to $85.7
million. The segment recorded an operating income of $5 million or
5.9% of sales, down from $6.9 million or 8% of sales in the second
quarter of 2013. Gross margin decreased to 21.4% from 23.5% a year
ago owing to reduced production in order to manage inventory
Revenues at the All Other segment increased 90.6% to $2.7 million
from $1.4 million a year ago. The segment recorded an operating
loss of $4.1 million against $4.5 million in the second quarter of
Standard Motor had a cash balance of $6.2 million as of Jun 30,
2014, compared with $5.6 million as on Dec 31, 2013. Long-term debt
of the company stood at $32,000 as of Jun 30, 2014, down from
$75,000 as of Dec 31, 2013.
In the first half of fiscal 2014, the company had cash flow of
$17.6 million from operating activities versus cash used of $12.4
million in the year-ago period. Capital expenditures rose to $6.4
million from $5.6 million a year ago.
Standard Motor announced a quarterly dividend of 13 cents per
share. The dividend is payable on Sep 2, 2014, to shareholders of
record as of Aug 15, 2014.
Acquisitions and JV
Earlier this year, Standard Motor announced two acquisitions. The
first takeover was that of Pensacola Fuel Injection, a
remanufacturer of diesel fuel. The company also acquired certain
assets and liabilities of Annex Manufacturing, a distributor of a
wide range of temperature control products. The company expects the
acquisitions to boost earnings in the future, excluding the
one-time transition costs.
Further, Standard Motor announced a 50/50 joint venture (JV) with
Gwo Yng Enterprises - a China-based manufacturer of air
conditioning accumulators, filter driers, hose assemblies, and
Standard Motor, based in Long Island City, NY, is one of the
leading manufacturers, distributors and marketers of automotive
replacement parts in the U.S. The company currently carries a Zacks
Rank #4 (Sell).
Some better-ranked stocks that are worth considering in the auto
sector include Visteon Corporation (
), Accuride Corp. (
) and American Axle & Manufacturing Holdings Inc. (
). Visteon sports a Zacks Rank #1 while Accuride and American Axle
carry a Zacks Rank #2 (Buy).
Want the latest recommendations from Zacks Investment Research?
Today, you can download 7 Best Stocks for the Next 30 Days.
Click to get this free report
AMER AXLE & MFG (AXL): Free Stock Analysis
STANDARD MOTOR (SMP): Free Stock Analysis
VISTEON CORP (VC): Free Stock Analysis Report
ACCURIDE CORP (ACW): Free Stock Analysis Report
To read this article on Zacks.com click here.