Standard Motor Products (NYSE:SMP) Announces Quarterly Earnings Results, Beats Expectations By $0.13 EPS

by · The Markets Daily

Standard Motor Products (NYSE:SMP – Get Free Report) released its quarterly earnings results on Friday. The auto parts company reported $1.54 EPS for the quarter, beating analysts’ consensus estimates of $1.41 by $0.13, Zacks reports. Standard Motor Products had a return on equity of 13.28% and a net margin of 2.78%. The business had revenue of $512.90 million during the quarter, compared to analyst estimates of $514.99 million.

Here are the key takeaways from Standard Motor Products’ conference call:

  • Third-quarter performance exceeded expectations, with adjusted sales growth of 2.8%, record adjusted EBITDA of $67 million, and adjusted EPS up 13.2% to $1.54.
  • Strong operating cash flow and inventory reductions helped cut net debt to $381.9 million and improve leverage to 1.8 times EBITDA, ahead of the company’s 2.0-times year-end target.
  • Vehicle Control sales rose 6%, Nissens grew 7.6%, and Engineered Solutions increased 4.9% in the quarter; management also cited potential share gains and favorable customer sell-through in key aftermarket categories.
  • The company is expanding its product portfolio and manufacturing footprint through a Thailand sensor joint venture, North American A/C condensers, and new European categories including ignition coils and air-door actuators, though meaningful revenue impact is expected to take time.
  • Full-year guidance was unchanged at low- to mid-single-digit sales growth and an 11%–12% adjusted EBITDA margin, but management continues to face tariff, inflation, distribution-cost, currency, and geopolitical risks; CFO Nathan Iles is also departing, with longtime former CFO Jim Burke serving as interim replacement.

Standard Motor Products Trading Up 10.8%

NYSE SMP opened at $42.37 on Friday. The stock has a market capitalization of $946.55 million, a price-to-earnings ratio of 18.92 and a beta of 0.85. Standard Motor Products has a one year low of $34.27 and a one year high of $46.00. The company has a debt-to-equity ratio of 0.73, a current ratio of 2.00 and a quick ratio of 0.80. The business’s fifty day moving average is $37.72 and its 200-day moving average is $38.59.

Standard Motor Products Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Tuesday, September 1st. Stockholders of record on Friday, August 14th were paid a dividend of $0.33 per share. This represents a $1.32 dividend on an annualized basis and a dividend yield of 3.1%. The ex-dividend date was Friday, August 14th. Standard Motor Products’s payout ratio is presently 58.93%.

Insiders Place Their Bets

In related news, EVP Dale Burks sold 9,051 shares of the stock in a transaction dated Friday, August 14th. The shares were sold at an average price of $38.71, for a total transaction of $350,364.21. Following the completion of the transaction, the executive vice president owned 56,955 shares in the company, valued at approximately $2,204,728.05. This represents a 13.71% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Insiders have sold a total of 18,349 shares of company stock worth $712,146 in the last three months. 5.50% of the stock is currently owned by corporate insiders.

More Standard Motor Products News

Here are the key news stories impacting Standard Motor Products this week:

  • Positive Sentiment: Adjusted earnings beat estimates: Third-quarter adjusted diluted EPS rose 13.2% year over year to $1.54, exceeding consensus estimates ranging from $1.39 to $1.41. GAAP diluted EPS was $1.42, compared with a loss in the prior-year period. Standard Motor Products Q3 Adjusted EPS Rises 13.2% to $1.54
  • Positive Sentiment: Sales growth and guidance held: Adjusted net sales increased 2.8% to $512.9 million, and management reaffirmed its full-year forecast for low- to mid-single-digit sales growth and an adjusted EBITDA margin of 11% to 12%. Standard Motor Products Releases Third Quarter 2026 Results
  • Positive Sentiment: Leverage improved materially: Net debt leverage fell to 1.8x from 2.5x in the second quarter, surpassing the company’s target of getting below 2.0x during fiscal 2026. The company also announced its quarterly dividend. Standard Motor Swings to Profit in Q3
  • Neutral Sentiment: Portfolio expansion: Standard Motor Products announced an expansion of its climate-control product portfolio, which could support longer-term aftermarket growth but was not accompanied by a quantified financial impact. Standard Motor Products Expands Climate Control Portfolio
  • Negative Sentiment: Reported revenue missed expectations: Consolidated third-quarter net sales were $507.8 million, below the approximately $515 million analyst estimate. This shortfall partially offsets the earnings and margin-related positives. Standard Motor Products Q3 Revenue Earnings Flash

Wall Street Analyst Weigh In

Several analysts have recently issued reports on the stock. Roth Capital reiterated a “buy” rating and issued a $54.00 target price on shares of Standard Motor Products in a research note on Monday, October 12th. Weiss Ratings reaffirmed a “buy (b-)” rating on shares of Standard Motor Products in a research report on Monday. Finally, Wall Street Zen raised shares of Standard Motor Products from a “hold” rating to a “buy” rating in a research report on Sunday, August 16th. Two analysts have rated the stock with a Buy rating and one has given a Hold rating to the company. According to MarketBeat.com, Standard Motor Products has an average rating of “Moderate Buy” and an average target price of $54.00.

Get Our Latest Stock Report on Standard Motor Products

About Standard Motor Products

(Get Free Report)

Standard Motor Products, Inc (NYSE:SMP) manufactures and distributes replacement parts for the automotive aftermarket. The company supplies components used to maintain and repair passenger vehicles, light trucks, and other transportation equipment, serving automotive parts distributors, retailers, repair shops, and vehicle service professionals.

Its product offerings include engine management components such as sensors, ignition parts, fuel system components, and emissions-related products.

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