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SMP — Standard Motor Products News Story

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Standard Motor Products beats Q2 adjusted EPS estimates, reaffirms FY guidance

Standard Motor Products beats Q2 adjusted EPS estimates, reaffirms FY guidance 


Overview

  • Automotive parts maker's Q2 sales missed analyst expectations, adjusted EPS beat consensus

  • Company saw strong gains in three of four operating segments, led by Temperature Control

  • Board approved quarterly dividend of 33 cents per share, up from 31 cents last year


Outlook

  • Standard Motor Products reaffirms full-year sales growth in low to mid-single digit range

  • Company expects full-year adjusted EBITDA margin of 11%-12%

  • Guidance excludes impact from tariff changes, Middle East conflict inflation, or rising interest rates


Result Drivers

  • TEMPERATURE CONTROL DEMAND - Adjusted net sales in Temperature Control rose 15.7%, driven by timing of preseason orders, despite cooler, wetter weather in May

  • NISSENS AUTOMOTIVE GROWTH - Nissens Automotive adjusted net sales rose 4.8%, helped by local currency sales growth and stronger currency conversion

  • ENGINEERED SOLUTIONS RECOVERY - Adjusted net sales in Engineered Solutions grew 16.8% as demand recovered across all end-markets


Company press release: ID:nPn4P7Bh4a


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q2 Sales

Miss

$501.60 mln

$511.68 mln (3 Analysts)

Q2 Adjusted EPS

Beat

$1.40

$1.39 (3 Analysts)

Q2 Net Income

$30.64 mln

Q2 Gross Profit

$164.62 mln

Q2 Operating Income

$50.84 mln


Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the auto, truck & motorcycle parts peer group is "buy"

  • Wall Street's median 12-month price target for Standard Motor Products Inc is $46.00, about 18.6% above its August 3 closing price of $38.78

  • The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 8 three months ago


Reuters Recommended Reads

  • Aug 4 - Continental posts Q2 profit beat, but warns of worsening raw material costs

  • Aug 4 - Aptiv Q2 revenue rises on non-auto growth

  • Aug 4 - Core Molding Q2 production revenue falls 1.2% on weak truck demand


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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