Standard Motor Q1 Earnings Surpass Estimates, Revenues Rise Y/Y

Standard Motor Products SMP posted first-quarter 2025 adjusted earnings per share (EPS) of 81 cents, which beat the Zacks Consensus Estimate of 44 cents and rose from 45 cents reported in the prior-year quarter.

Total revenues rose to $413.4 million from $331.4 million reported in the first quarter of 2024. The reported figure also beat the Zacks Consensus Estimate of $394 million. Gross profit rose to $124.7 million from the year-ago quarter’s $89.5 million. Operating income increased to $24.5 million from $14.6 million reported in the year-ago quarter.

Standard Motor Products, Inc. Price, Consensus and EPS Surprise

Standard Motor Products, Inc. price-consensus-eps-surprise-chart | Standard Motor Products, Inc. Quote

Segmental Results

After the acquisition of AX V Nissens III APS (“Nissens”) on Nov. 1, 2024, the company reports for four operating segments: Vehicle Control, Temperature Control, Engineered Solutions and Nissens Automotive. 

In the reported quarter, revenues from the Vehicle Control segment totaled $192.3 million, which rose 3.7% year over year due to steady demand for products. However, the metric missed our estimate of $198.3 million. Operating income was $18.3 million, up from the prior-year quarter’s $15.6 million but missed our estimate of $24.5 million.

Revenues from the Temperature Control segment came in at $88.9 million, which rose from the year-ago quarter’s $71.6 million and surpassed our projection of $72 million due to early orders from customers getting ready for the season and solid ongoing sales to end consumers. The segment registered an operating income of $7.8 million, up from $2.1 million reported in the year-ago period, but fell short of our expectation of $8.2 million.

Revenues from the Engineered Solutions segment totaled $66 million, down 11.2% year over year due to continued softness in certain end markets. The metric also lagged our estimate of $81 million. Operating income was $3.2 million, up from the prior-year quarter’s $2.2 million and marginally missed our expectation of $3.3 million.

Revenues from the Nissens Automotive segment totaled $66.2 million and surpassed our expectation of $42.5 million. The segment registered an operating income of $7.6 million. 

(Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)

Financial Position

Standard Motor had $50.3 million in cash as of March 31, 2025, compared with $44.4 million as of Dec. 31, 2024.
Long-term debt totaled $627.3 million as of March 31, 2025, compared with $535.2 million as of Dec. 31, 2024.

Net cash used by the operating activities totaled $60.2 million at the end of the first quarter of 2025. SG&A expenses rose 33.6% to $99.8 million.

The company declared a quarterly dividend of 31 cents per share. The dividend will be paid out on June 2, 2025, to stockholders of record as of May 15, 2025. 

SMP Reiterates 2025 Guidance

For 2025, the company expects sales growth to be in the mid-teens. It expects adjusted EBITDA in the range of 10-11% of total revenues.

SMP carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Big Releases From the Auto Space

Sonic Automotive, Inc. SAH posted first-quarter 2025 adjusted earnings per share of $1.48, which topped the Zacks Consensus Estimate of $1.46 and improved 8.82% from the year-ago quarter. Total revenues amounted to $3.65 billion, which surpassed the Zacks Consensus Estimate of $3.54 billion and rose from the year-ago quarter’s $3.38 billion.

SAH had cash & cash equivalents of $64.6 million as of March 31, 2025, up from $44 million as of Dec. 31, 2024. Long-term debt was $1.49 billion as of March 31, 2025, down from $1.51 billion as of Dec. 31, 2024.

AutoNation, Inc. AN reported first-quarter 2025 adjusted earnings of $4.68 per share, which increased 4% year over year and beat the Zacks Consensus Estimate of $4.35, primarily on the back of better-than-expected revenues and profits from retail new and used vehicles. In the quarter under review, revenues amounted to $6.69 billion, which surpassed the Zacks Consensus Estimate of $6.57 billion and rose from $6.48 billion reported in the first quarter of 2024.

As of March 31, 2025, AutoNation’s liquidity was $1.6 billion, including $71 million in cash and nearly $1 billion available under its revolving credit facility. The firm’s inventory was valued at $3.23 billion. At the end of the first quarter, non-vehicle debt was $3.96 billion.

Group 1 Automotive GPI reported first-quarter 2025 adjusted earnings per share of $10.17, which beat the Zacks Consensus Estimate of $9.68 and rose 7.17% year over year. The automotive retailer registered net sales of $5.51 billion, beating the Zacks Consensus Estimate of $5.34 billion. The top line also rose from the year-ago quarter’s $4.47 billion. 

Group 1 had cash and cash equivalents of $70.5 million as of March 31, 2025, up from $34.4 million as of Dec. 31, 2024. Total debt was $2.8 billion as of March 31, 2025, down from $2.91 billion as of Dec. 31, 2024.

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