Group 1 - Standard Motor Products (NYSE: SMP) has been performing well recently, with a positive outlook highlighted in a bullish article from March [1] - The company experienced a dip in shares earlier this year, but the current performance indicates recovery and growth potential [1] Group 2 - Crude Value Insights provides an investing service focused on oil and natural gas, emphasizing cash flow and companies with growth prospects [2] - Subscribers have access to a stock model account, detailed cash flow analyses of exploration and production firms, and live discussions about the sector [2]

Company Overview - Standard Motor Products Inc. is a leading manufacturer, distributor, and marketer of premium automotive replacement parts for engine management and temperature control systems, founded in 1919 [12]. Zacks Rank and Style Scores - Standard Motor Products (SMP) holds a Zacks Rank of 3 (Hold) and has a VGM Score of B, indicating a solid position in the market [13]. - The company has a Momentum Style Score of B, with shares increasing by 2.6% over the past four weeks [13]. - Three analysts have revised their earnings estimates higher for fiscal 2025, with the Zacks Consensus Estimate increasing by $0.07 to $3.58 per share [13]. - SMP has an average earnings surprise of 38.6%, suggesting strong performance relative to expectations [13]. Investment Considerations - With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, SMP is recommended for investors' consideration [14].

Company Recognition - Standard Motor Products, Inc. (SMP) has been recognized as one of Newsweek's America's Greatest Workplaces 2025 and also named one of America's Greatest Workplaces in Manufacturing [1][2] Employee Satisfaction Metrics - The recognition is based on a large-scale employee survey that evaluated ten categories including mental wellbeing, job security, work-life balance, working environment, company image, community, sustainability and awareness, compensation and benefits, training and career progression, and corporate culture [3] - Over 400,000 interviews were conducted and nearly 5 million company reviews were analyzed to compile the list [3] Company Overview - SMP has over 100 years of experience as a leading independent manufacturer and distributor of premium replacement parts in the automotive aftermarket [5] - The company sells products primarily to retailers, warehouse distributors, original equipment manufacturers, and original equipment service part operations across various regions including the United States, Canada, Europe, Asia, Mexico, and other Latin American countries [5]

Industry Outlook - The Zacks Automotive - Replacement Parts industry has a strong outlook due to the aging vehicle fleet in the U.S., which averages 12.6 years, leading to high repair volumes [1][3] - Tariff-driven volatility may reduce new vehicle sales, encouraging vehicle owners to repair rather than replace, thus increasing demand for parts and services [1][4] - The shift towards smart vehicles presents new growth opportunities, requiring adaptation to technology-heavy systems [1][5] Industry Overview - The industry includes companies that produce, market, and distribute replacement components for the automotive aftermarket, focusing on essential parts like engines, brakes, and gearboxes [2] - The auto replacement market is less sensitive to economic downturns as consumers prefer maintaining their vehicles over purchasing new ones [2] Key Themes - The trend of older cars requiring more repairs boosts demand for replacement parts, benefiting the industry as vehicles remain operational longer [3] - Economic uncertainty and higher vehicle prices are leading consumers to hold onto their cars, increasing the demand for repairs [4] - The advancement of vehicle technology necessitates specialized components and skilled technicians, creating new opportunities for growth [5] Cost Management and Innovation - While innovation drives growth, it also increases costs due to the need for R&D and skilled labor, making cost management essential for companies [6] Industry Ranking and Performance - The Zacks Automotive - Replacement Parts industry ranks 23, placing it in the top 9% of approximately 250 Zacks industries, indicating solid near-term prospects [7][8] - The industry's earnings estimates for 2025 have increased by 2% since the beginning of the year, reflecting growing analyst confidence [9] Market Performance - The industry has underperformed compared to the Auto, Tires, and Truck sector and the S&P 500 over the past year, declining by 5.4% [11] Valuation - The industry is currently trading at an EV/EBITDA ratio of 8.61X, significantly lower than the S&P 500's 16.71X and the sector's 21.62X [14] Investment Opportunities - **Dorman Products (DORM)**: A leading player in the automotive aftermarket, known for expanding its product lineup and maintaining a low debt-to-capitalization ratio of 25% [18] - DORM has consistently surpassed earnings estimates, with a consensus estimate for 2025 indicating year-over-year growth of 5% in sales and 10% in earnings [19] - **Standard Motor Products (SMP)**: A major manufacturer of automotive replacement parts, benefiting from strategic acquisitions and low exposure to tariffs [22] - SMP has also exceeded earnings estimates, with a consensus estimate for 2025 showing year-over-year growth of 17% in sales and 13% in earnings [23]

Core Viewpoint - Standard Motor Products (SMP) has seen a 9.3% increase in share price over the past month, outperforming the S&P 500, but recent estimates have trended downward, indicating potential challenges ahead [1]. Group 1: Earnings and Estimates - The consensus estimate for Standard Motor Products has shifted downward by 11.92% over the past month [2]. - The stock has a Zacks Rank of 2 (Buy), suggesting an expectation of above-average returns in the coming months despite the downward estimate revisions [4]. Group 2: VGM Scores - Standard Motor Products has a Growth Score of D and a Momentum Score of F, indicating subpar performance in these areas. However, it has received an A grade for value, placing it in the top 20% for this investment strategy [3]. Group 3: Industry Performance - Standard Motor Products is part of the Zacks Automotive - Replacement Parts industry, where LKQ, a competitor, has gained 5.6% over the past month. LKQ reported revenues of $3.46 billion for the last quarter, reflecting a year-over-year decline of 6.5% [5]. - For the current quarter, LKQ is expected to post earnings of $0.93 per share, which is a 5.1% decrease from the previous year, and has a Zacks Rank of 4 (Sell) [6].

Core Viewpoint - Zacks Premium provides tools and resources to help investors make informed decisions and enhance their confidence in stock market investments [1] Summary by Categories Zacks Style Scores - Zacks Style Scores are indicators that assist investors in selecting stocks likely to outperform the market within 30 days, rated from A to F based on value, growth, and momentum characteristics [2] Value Score - The Value Style Score identifies attractive and discounted stocks using ratios such as P/E, PEG, Price/Sales, and Price/Cash Flow, appealing to value investors [3] Growth Score - The Growth Style Score focuses on a company's financial health and future outlook, analyzing projected and historical earnings, sales, and cash flow to identify stocks with sustainable growth potential [4] Momentum Score - The Momentum Style Score helps investors capitalize on price or earnings trends, utilizing factors like one-week price change and monthly earnings estimate changes to identify high-momentum stocks [5] VGM Score - The VGM Score combines Value, Growth, and Momentum Scores, providing a comprehensive indicator for investors who prefer a multifaceted approach to stock selection [6] Zacks Rank - The Zacks Rank is a proprietary stock-rating model based on earnings estimate revisions, with 1 (Strong Buy) stocks achieving an average annual return of +25.41% since 1988, significantly outperforming the S&P 500 [7][8] Stock Selection Strategy - To maximize returns, investors should focus on stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B, while also considering earnings outlook changes [9][10] Company Spotlight: Standard Motor Products (SMP) - Standard Motor Products Inc., established in 1919, is a leading manufacturer and distributor of automotive replacement parts, reporting results in four segments since February 2025 [11] - SMP holds a Zacks Rank of 2 (Buy) with a VGM Score of A, and a Growth Style Score of B, indicating a forecasted year-over-year earnings growth of 10.7% for the current fiscal year [12] - The Zacks Consensus Estimate for SMP's earnings has increased by $0.05 to $3.51 per share, with an average earnings surprise of 38.6%, making it a strong candidate for growth investors [12][13]

Core Viewpoint - Standard Motor Products (SMP) reported strong first-quarter 2025 results, with adjusted earnings per share (EPS) significantly exceeding expectations and showing year-over-year growth [1][9]. Financial Performance - Adjusted EPS for Q1 2025 was 81 cents, surpassing the Zacks Consensus Estimate of 44 cents and increasing from 45 cents in the prior-year quarter [1]. - Total revenues rose to $413.4 million from $331.4 million in Q1 2024, exceeding the Zacks Consensus Estimate of $394 million [2]. - Gross profit increased to $124.7 million from $89.5 million year-over-year, while operating income rose to $24.5 million from $14.6 million in the prior-year quarter [2]. Segmental Results - Vehicle Control segment revenues were $192.3 million, a 3.7% increase year-over-year, but fell short of the estimate of $198.3 million. Operating income was $18.3 million, up from $15.6 million [4]. - Temperature Control segment revenues reached $88.9 million, up from $71.6 million year-over-year, exceeding the projection of $72 million. Operating income was $7.8 million, up from $2.1 million [5]. - Engineered Solutions segment revenues totaled $66 million, down 11.2% year-over-year, missing the estimate of $81 million. Operating income was $3.2 million, up from $2.2 million [6]. - Nissens Automotive segment revenues were $66.2 million, surpassing the expectation of $42.5 million, with an operating income of $7.6 million [6]. Financial Position - As of March 31, 2025, the company had $50.3 million in cash, up from $44.4 million at the end of 2024. Long-term debt increased to $627.3 million from $535.2 million [7]. - Net cash used by operating activities was $60.2 million, and SG&A expenses rose 33.6% to $99.8 million [7]. Dividend and Guidance - The company declared a quarterly dividend of 31 cents per share, payable on June 2, 2025, to stockholders of record as of May 15, 2025 [8]. - For 2025, SMP expects sales growth in the mid-teens and adjusted EBITDA to be in the range of 10-11% of total revenues [9].

Standard Motor Products, Inc. 1st Quarter 2025 Earnings Call | April 30, 2025 1 Safe Harbor – Forward Looking Statements You should be aware that except for historical information, the matters discussed herein are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward looking statements, including projections and anticipated levels of future performance, are based on current information and assumptions and involve risks and uncertainties which may caus ...

Financial Data and Key Metrics Changes - The company reported a nearly 25% increase in sales for the first quarter of 2025, with a 5% increase when excluding the recent Nissens acquisition [5][6] - EBITDA increased by $20 million, with a 350 basis point lift in EBITDA margin [6] - Consolidated net sales increased by 24.7%, and adjusted EBITDA rose to 10.4% of net sales, with non-GAAP diluted earnings per share up 80% compared to last year [25][29] Business Line Data and Key Metrics Changes - **Vehicle Control Segment**: Sales increased by 3.7% to $192.3 million, with adjusted EBITDA rising to 11.6%, up 120 basis points from last year [22] - **Temperature Control Segment**: Sales increased by 24.1% to $88.9 million, with adjusted EBITDA at 10.6% [22] - **Engineered Solutions Segment**: Sales decreased by 11.2%, but adjusted EBITDA improved to 9.7% due to a favorable customer and product mix [23][24] - **Nissens Automotive**: Contributed $66.2 million in net sales and $11.5 million in adjusted EBITDA, exceeding expectations with a 17.3% EBITDA margin [24] Market Data and Key Metrics Changes - The U.S. now represents about 70% of total sales, down from 90% a few years ago, indicating increased geographic diversification [19] - The company noted that the aftermarket industry tends to outperform during economic downturns, as consumers delay new car purchases and maintain existing vehicles [31] Company Strategy and Development Direction - The company is focused on leveraging its North American manufacturing footprint to mitigate tariff impacts and maintain competitive pricing [15][17] - There is an emphasis on operational excellence and cost reduction programs to enhance resilience in a challenging economic environment [32][33] - The integration of Nissens is expected to yield significant synergies and expand product offerings [14][33] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating the uncertain economic climate, citing structural advantages and a resilient aftermarket industry [30][31] - The company affirmed its guidance for mid-teens percentage growth in net sales for 2025, despite tariff-related uncertainties [28][29] Other Important Information - Cash used in operations increased to $60.2 million due to higher accounts receivable and inventory balances related to sales growth [25] - The company is actively engaged in tariff mitigation efforts, including working with suppliers to reduce costs and relocating to lower tariff regions [18] Q&A Session Summary Question: POS and Vehicle Control performance - Management confirmed that POS in Vehicle Control was up in the low single digits during the quarter, indicating a positive trend [38][39] Question: Impact of tariffs on imported auto parts - Management indicated that recent tariff relief announcements appear to be more focused on automakers, with minimal expected impact on the company [40] Question: Nissens' growth and integration - Nissens is performing well and continues to grow, with integration efforts ongoing but no immediate financial impact expected [41][42] Question: Competitive positioning in the tariff environment - Management believes their North American footprint provides a structural advantage over competitors, particularly in the current tariff landscape [48][49] Question: European aftermarket trends - Management noted that hard failure items in Europe are outperforming, and Nissens is well-positioned to take advantage of these trends [50] Question: Outlook for Q2 orders and inventory management - Management does not believe there was a significant pull forward in orders due to tariffs, and preseason orders for Temperature Control were front-loaded this year [51][52] Question: Retailers' response to tariff pricing - Management is in communication with retailers and believes that a fair negotiation process will allow for passing through tariff costs [53][54] Question: Status of facility move and associated costs - The facility move is ongoing, with costs in line with previous estimates, and updates on synergies will be provided as operations ramp up [65][66]

(Mark One) þ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934. For the quarterly period ended March 31, 2025 or Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934. Commission file number: 001-04743 Standard Motor Products, Inc. (Exact name of registrant as specified in its charter) New York 11-1362020 (I.R.S. Employer (State or ot ...