Share price of Standard Motor Products Inc. SMP decreased 6.5% to $37.8 on Apr 30, after the company reported a 24.5% decline in adjusted earnings per share to 40 cents in the first quarter of 2015 from 53 cents recorded in the prior-year quarter. Also, earnings missed the Zacks Consensus Estimate by 18 cents. Earnings from continuing operations went down 25.8% to $9.2 million from $12.4 million in the year-ago quarter.
Including non-operational gains and losses, earnings amounted to $9.3 million or 40 cents per share, compared with $12.4 million or 53 cents in the prior-year quarter.
Total revenue decreased 2.2% to $227.6 million from $232.8 million a year ago, missing the Zacks Consensus Estimate of $245 million.
Gross profit went down 5.9% to $63.9 million (28.1% of sales) from $67.9 million (29.2% of sales) in the first quarter of 2014. Operating income decreased 26.9% to $14.9 million from $20.4 million in the first quarter of 2014.
Segment Results
Revenues at the Engine Management segment went down 1.2% to $177.1 million in the reported quarter from $179.3 million a year ago. Operating profit was $21.7 million (12.3% of sales), compared with $24.5 million (13.7% of sales) in the corresponding quarter last year.
Revenues at the Temperature Control segment decreased 5.4% to $48.7 million. The segment recorded an operating loss of $1.4 million (2.8% of sales), wider than a loss of $613,000 (1.2% of sales) in the first quarter of 2014.
Revenues at the All Other segment decreased to $1.8 million from $2 million a year ago. The segment recorded an operating loss of $5.6 million, wider than $4.8 million in the first quarter of 2014.
Financial Position
Standard Motor had cash balance of $8.1 million as of Mar 31, 2015, compared with $13.7 million as of Dec 31, 2014. Long-term debt of the company stood at $194,000 as of Mar 31, 2015, versus $258,000 as of Dec 31, 2014.
In the first quarter of 2015, Standard Motor had cash outflow of $14.2 million from operating activities versus cash inflow of $9.2 million in the year-ago period. Capital expenditures rose to $4 million from $2.8 million a year ago.
Dividend
Standard Motor’s board approved a quarterly dividend of 15 cents per share. The dividend will be paid on Jun 1, 2015 to stockholders on record as of May 15.
Zacks Rank
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 #3 (Hold).
Better-ranked stocks in the same industry include American Axle & Manufacturing Holdings Inc. AXL, Wabash National Corp. WNC and SORL Auto Parts, Inc. SORL, all carrying a Zacks Rank #2 (Buy).
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