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Standard Motor Products (SMP) Reports Q1 Earnings: What Key Metrics Have to Say
ZACKS· 2025-04-30 15:00
Core Insights - Standard Motor Products (SMP) reported a revenue of $413.38 million for the quarter ended March 2025, reflecting a year-over-year increase of 24.7% and exceeding the Zacks Consensus Estimate of $394.22 million by 4.86% [1] - The company's earnings per share (EPS) for the quarter was $0.81, significantly higher than the $0.45 reported in the same quarter last year, and surpassing the consensus EPS estimate of $0.44 by 84.09% [1] Revenue Breakdown - Vehicle Control segment generated revenues of $192.34 million, slightly below the average estimate of $192.67 million, marking a year-over-year increase of 3.7% [4] - Temperature Control segment reported revenues of $88.88 million, exceeding the average estimate of $72.52 million, with a year-over-year growth of 24.1% [4] - Engineered Solutions segment achieved revenues of $65.97 million, falling short of the estimated $77.01 million, representing a decline of 11.2% compared to the previous year [4] Stock Performance - Over the past month, shares of Standard Motor Products have returned -1.6%, compared to a -0.2% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 2 (Buy), suggesting potential for outperformance against the broader market in the near term [3]
SMP(SMP) - 2025 Q1 - Earnings Call Transcript
2025-04-30 15:00
Financial Data and Key Metrics Changes - Company reported nearly 25% increase in sales for Q1 2025, with a 5% increase excluding the 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 margin rose to 10.4% of net sales [26] Business Line Data and Key Metrics Changes - Vehicle Control segment saw a 3.7% increase in sales, continuing a growth trend [7][23] - Temperature Control segment experienced a 24.1% increase in sales, driven by strong preseason orders [9][23] - Engineered Solutions segment sales decreased by 11.2%, but adjusted EBITDA improved to 9.7% due to favorable customer and product mix [10][24] - Nissens contributed $66.2 million in net sales and $11.5 million in adjusted EBITDA, exceeding expectations [25] Market Data and Key Metrics Changes - North America remains a strong market, with favorable macro trends supporting aftermarket demand [8][15] - U.S. sales now represent about 70% of total sales, down from 90% a few years ago, indicating geographic diversification [20] Company Strategy and Development Direction - Company focuses on maintaining a North American manufacturing footprint to mitigate tariff impacts [15][17] - Integration of Nissens is expected to yield significant synergies and enhance market position [14][33] - Emphasis on operational excellence and cost reduction programs to navigate economic challenges [31][33] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating the uncertain economic climate, citing the resilience of the aftermarket industry [30][31] - Tariffs are expected to introduce some inflation, but demand for nondiscretionary parts is anticipated to remain stable [31][32] - Full-year guidance for 2025 remains unchanged, expecting mid-teens percentage growth in net sales [28][29] Other Important Information - Cash used in operations increased to $60.2 million due to higher accounts receivable and inventory balances [26] - Capital expenditures for the quarter were $9.1 million, including investments in a new distribution center [27] Q&A Session Summary Question: POS and Vehicle Control performance - Management confirmed low single-digit gains in POS for Vehicle Control in Q1, following a flat trend last year [40][41] Question: Impact of tariffs on aftermarket - Management indicated that recent tariff announcements are expected to have minimal impact, primarily affecting OEMs [42] Question: Nissens growth and integration - Nissens continues to show growth in the European market, with integration efforts ongoing but no immediate financial impact [43][44] Question: Competitive positioning in tariff environment - Company believes its North American footprint provides a structural advantage over competitors [52] Question: European aftermarket trends - Similar trends observed in Europe, with hard failure items outperforming in the aftermarket [53] Question: Inventory management and tariff anticipation - No evidence of pull-forward orders due to tariffs; preseason orders for Temperature Control were front-loaded [54] Question: Retailers' response to tariff pricing - Management is in negotiations with retailers to share tariff costs, expecting a fair process [56][57] Question: Current impact of tariffs in Q1 - No significant impact from new tariffs observed in Q1 numbers, with cost impacts expected later in the year [62] Question: Strength of Q1 performance - Q1 performance was strong, but management maintains guidance due to potential uncertainties ahead [64]
Standard Motor Products (SMP) Beats Q1 Earnings and Revenue Estimates
ZACKS· 2025-04-30 14:45
Core Viewpoint - Standard Motor Products (SMP) reported strong quarterly earnings, significantly exceeding expectations and showing substantial year-over-year growth in both earnings and revenues [1][2]. Financial Performance - Quarterly earnings were $0.81 per share, surpassing the Zacks Consensus Estimate of $0.44 per share, and up from $0.45 per share a year ago, representing an earnings surprise of 84.09% [1]. - Revenues for the quarter reached $413.38 million, exceeding the Zacks Consensus Estimate by 4.86%, and up from $331.4 million in the same quarter last year [2]. Market Performance - Standard Motor Products shares have declined approximately 21.4% since the beginning of the year, contrasting with the S&P 500's decline of 5.5% [3]. - The company has consistently surpassed consensus EPS estimates over the last four quarters [2]. Future Outlook - The current consensus EPS estimate for the upcoming quarter is $1.15 on revenues of $460.09 million, and for the current fiscal year, it is $3.51 on revenues of $1.71 billion [7]. - The Zacks Rank for Standard Motor Products is 2 (Buy), indicating expectations for the stock to outperform the market in the near future [6]. Industry Context - The Automotive - Replacement Parts industry is currently ranked in the top 23% of over 250 Zacks industries, suggesting a favorable outlook for companies within this sector [8].
SMP(SMP) - 2025 Q1 - Quarterly Results
2025-04-30 13:45
[First Quarter 2025 Financial Results Overview](index=1&type=section&id=First%20Quarter%202025%20Financial%20Results%20Overview) [Key Financial Highlights](index=1&type=section&id=Key%20Financial%20Highlights) Standard Motor Products, Inc. reported strong first-quarter 2025 results, with significant increases in net sales, adjusted EBITDA margin, and adjusted diluted earnings per share, driven partly by the Nissens acquisition First Quarter 2025 Key Financial Highlights | Metric | Q1 2025 | Q1 2024 | Change (%) | | :----------------------------------------- | :------ | :------ | :--------- | | Net sales | $413.4 million | $331.4 million | 24.7% | | Earnings from continuing operations (GAAP) | $13.7 million | $9.9 million | 38.4% | | Diluted EPS (GAAP) | $0.61 | $0.44 | 38.6% | | Earnings from continuing operations (Non-GAAP) | $18.0 million | $10.0 million | 80.0% | | Diluted EPS (Non-GAAP) | $0.81 | $0.45 | 80.0% | - First quarter net sales of **$413.4 million** were up **24.7%** year-over-year, and up **4.8%** excluding the Nissens acquisition[4](index=4&type=chunk) - First quarter adjusted EBITDA margin increased **350 basis points** to **10.4%**[4](index=4&type=chunk) - Adjusted diluted earnings per share of **$0.81** in the quarter increased **80%** from last year[4](index=4&type=chunk) [Management Commentary and Segment Performance](index=2&type=section&id=Management%20Commentary%20and%20Segment%20Performance) CEO Eric Sills expressed satisfaction with the quarter's performance, highlighting strong profit across all segments and the positive impact of the Nissens acquisition, while detailing performance for each business segment - CEO Eric Sills stated that first quarter results exceeded expectations, with sales up nearly **25%** (nearly **5%** excluding Nissens) and adjusted diluted earnings per share up **80%**, driven by strong profit performance from all segments[5](index=5&type=chunk) [Vehicle Control Segment Performance](index=2&type=section&id=Vehicle%20Control%20Segment%20Performance) The Vehicle Control segment continued its positive trend with a 3.7% sales increase, supported by solid customer order patterns and steady demand for non-discretionary products Vehicle Control Segment Sales | Metric | Q1 2025 (in thousands) | Q1 2024 (in thousands) | Change (%) | | :--------------------- | :--------------------- | :--------------------- | :--------- | | Total Vehicle Control | $192,342 | $185,524 | 3.7% | - Customer order patterns were solid, indicating steady demand for the segment's largely non-discretionary products[5](index=5&type=chunk) [Temperature Control Segment Performance](index=2&type=section&id=Temperature%20Control%20Segment%20Performance) The Temperature Control segment achieved an excellent start to the year with a 24.1% sales increase, driven by planned pre-season orders and strong ongoing customer sell-through Temperature Control Segment Sales | Metric | Q1 2025 (in thousands) | Q1 2024 (in thousands) | Change (%) | | :--------------------- | :--------------------- | :--------------------- | :--------- | | Total Temperature Control | $88,883 | $71,608 | 24.1% | - Sales strength was driven by a combination of planned pre-season orders and strong ongoing customer sell-through[6](index=6&type=chunk) [Engineered Solutions Segment Performance](index=2&type=section&id=Engineered%20Solutions%20Segment%20Performance) Despite an 11.2% sales decline due to softness in end markets, the Engineered Solutions segment improved profitability through a better customer and product mix and secured new business awards for future growth Engineered Solutions Segment Sales | Metric | Q1 2025 (in thousands) | Q1 2024 (in thousands) | Change (%) | | :--------------------- | :--------------------- | :--------------------- | :--------- | | Total Engineered Solutions | $65,972 | $74,271 | -11.2% | - Improved profitability was generated on lower sales due to an improved customer and product mix[7](index=7&type=chunk) - The segment continues to win new business awards, which bodes well for future growth as the cycle recovers[7](index=7&type=chunk) [Nissens Automotive Segment Performance](index=2&type=section&id=Nissens%20Automotive%20Segment%20Performance) In its first full quarter of ownership, Nissens Automotive contributed $66.2 million in sales with an adjusted EBITDA margin of 17.3%, exceeding expectations, and integration efforts are on track for significant cost reduction synergies Nissens Automotive Segment Performance | Metric | Q1 2025 (in thousands) | | :--------------------- | :--------------------- | | Sales Contribution | $66,182 | | Adjusted EBITDA Margin | 17.3% | - Integration efforts are well underway, with an initial target of **$8-12 million** in run-rate cost reduction synergies within **24 months** of ownership[8](index=8&type=chunk) [Profitability, Balance Sheet, and Outlook](index=3&type=section&id=Profitability%2C%20Balance%20Sheet%2C%20and%20Outlook) The company saw a significant increase in adjusted EBITDA and margin improvement, primarily due to the Nissens acquisition and cost containment. Net debt increased reflecting the acquisition and seasonal working capital. Full-year guidance remains consistent, excluding tariff impacts Adjusted EBITDA Performance | Metric | Q1 2025 (in thousands) | Q1 2024 (in thousands) | Change (%) | | :--------------------- | :--------------------- | :--------------------- | :--------- | | Adjusted EBITDA | $42,800 | $22,900 | 86.9% | | Adjusted EBITDA Margin | 10.4% | 6.9% | 350 bps | - Adjusted EBITDA gain was just over half from Nissens, with the balance from improved performance of other segments, leverage on North American sales, and cost containment actions[9](index=9&type=chunk) - Total net debt at quarter-end stood at **$600.3 million**, primarily reflecting additional borrowings related to the Nissens acquisition and seasonal working capital build[10](index=10&type=chunk) - The company maintains its previous guidance for full-year top-line growth in the **mid-teens** and adjusted EBITDA margin in a range of **10-11%**, excluding the impact of tariffs[12](index=12&type=chunk) - The diverse global footprint, with over half of US sales from North American manufactured products, and the Nissens acquisition provide competitive advantages and sales diversification to mitigate tariff impacts, largely through pass-through pricing[11](index=11&type=chunk) [Quarterly Dividend and Closing Remarks](index=4&type=section&id=Quarterly%20Dividend%20and%20Closing%20Remarks) The Board of Directors approved a quarterly dividend of 31 cents per share. The CEO reiterated optimism for 2025, emphasizing the aftermarket's resilience, the company's stable business nature, and the long-term potential from Nissens Quarterly Dividend Declaration | Metric | Q1 2025 | Q1 2024 | | :-------------------------- | :------ | :------ | | Dividend declared per common share | $0.31 | $0.29 | - The dividend will be paid on **June 2, 2025**, to stockholders of record on **May 15, 2025**[13](index=13&type=chunk) - Management is optimistic about **2025**, citing the aftermarket's resilience, the non-discretionary nature of the business, and the long-term growth and synergy savings from Nissens[14](index=14&type=chunk) [Additional Information and Disclosures](index=4&type=section&id=Additional%20Information%20and%20Disclosures) [Conference Call Information](index=4&type=section&id=Conference%20Call%20Information) Details for the Q1 2025 earnings conference call, including date, time, webcast link, and dial-in numbers for live access and replay - A conference call will be held on **Wednesday, April 30, 2025, at 11:00 AM, Eastern Time**[15](index=15&type=chunk) - The call can be accessed via webcast on **www.smpcorp.com** or by dialing **800-274-8461** (domestic) or **203-518-9814** (international), using conference call ID **SMP1Q2025**[15](index=15&type=chunk) - A playback will be available immediately after the call by dialing **800-934-7884** (domestic) or **402-220-6987** (international), and the webcast replay will be active within **24 hours**[15](index=15&type=chunk) [Safe Harbor Statement](index=4&type=section&id=Safe%20Harbor%20Statement) A standard disclosure under the Private Securities Litigation Reform Act of 1995, cautioning investors that forward-looking statements are subject to risks and uncertainties, and the company does not undertake to update them - Forward-looking statements are based on management's expectations but are subject to risks and uncertainties that may cause actual results to differ materially[16](index=16&type=chunk)[17](index=17&type=chunk) - The company undertakes no obligation or intention to update these statements after the date of the release[17](index=17&type=chunk) [Consolidated Financial Statements](index=6&type=section&id=Consolidated%20Financial%20Statements) [Consolidated Statements of Operations](index=6&type=section&id=Consolidated%20Statements%20of%20Operations) The consolidated statements of operations show a significant increase in net sales, gross profit, operating income, and net earnings for the three months ended March 31, 2025, compared to the same period in 2024 Consolidated Statements of Operations Highlights | Metric | Q1 2025 (in thousands) | Q1 2024 (in thousands) | Change (%) | | :----------------------------------------- | :--------------------- | :--------------------- | :--------- | | Net sales | $413,379 | $331,403 | 24.7% | | Gross profit | $124,722 | $89,522 | 39.3% | | Operating income | $24,462 | $14,619 | 67.3% | | Net earnings attributable to SMP | $12,566 | $8,824 | 42.4% | | Diluted EPS (Continuing operations) | $0.61 | $0.44 | 38.6% | | Diluted EPS (Net earnings attributable to SMP) | $0.56 | $0.39 | 43.6% | [Segment Revenues](index=7&type=section&id=Segment%20Revenues) Detailed revenue breakdown by segment shows strong growth in Temperature Control and the significant contribution from the newly acquired Nissens Automotive, while Engineered Solutions experienced a decline Segment Revenues (Three Months Ended March 31) | Segment | 2025 (in thousands) | 2024 (in thousands) | Change (%) | | :--------------------- | :------------------ | :------------------ | :--------- | | Vehicle Control | $192,342 | $185,524 | 3.7% | | Temperature Control | $88,883 | $71,608 | 24.1% | | Engineered Solutions | $65,972 | $74,271 | -11.2% | | Nissens Automotive | $66,182 | — | N/A | | Total | $413,379 | $331,403 | 24.7% | [Segment Operating Profit](index=8&type=section&id=Segment%20Operating%20Profit) Segment operating profit analysis reveals improved gross margins across all legacy segments and a strong operating income contribution from Nissens Automotive, despite acquisition expenses Segment Operating Income (Three Months Ended March 31) | Segment | Q1 2025 Operating Income (in thousands) | Q1 2025 Operating Margin (%) | Q1 2024 Operating Income (in thousands) | Q1 2024 Operating Margin (%) | | :--------------------- | :------------------------------------ | :--------------------------- | :------------------------------------ | :--------------------------- | | Vehicle Control | $18,326 | 9.5% | $15,641 | 8.4% | | Temperature Control | $7,775 | 8.7% | $2,089 | 2.9% | | Engineered Solutions | $3,195 | 4.8% | $2,243 | 3.0% | | Nissens Automotive | $7,584 | 11.5% | — | — | | Consolidated Operating Income | $24,462 | 5.9% | $14,619 | 4.4% | [Reconciliation of GAAP and Non-GAAP Measures](index=9&type=section&id=Reconciliation%20of%20GAAP%20and%20Non-GAAP%20Measures) This section reconciles GAAP financial measures to non-GAAP measures, adjusting for special items like restructuring, integration, and acquisition expenses, providing a clearer view of ongoing operational performance [Company-wide Reconciliation](index=9&type=section&id=Company-wide%20Reconciliation) Reconciliation of company-wide GAAP earnings, diluted EPS, operating income, and EBITDA to their non-GAAP equivalents, showing the impact of special items Company-wide GAAP to Non-GAAP Reconciliation (Three Months Ended March 31) | Metric | Q1 2025 GAAP (in thousands) | Q1 2025 Non-GAAP (in thousands) | Q1 2024 GAAP (in thousands) | Q1 2024 Non-GAAP (in thousands) | | :----------------------------------------- | :-------------------------- | :---------------------------- | :-------------------------- | :---------------------------- | | Earnings from Continuing Operations Attributable To SMP | $13,705 | $18,012 | $9,863 | $10,005 | | Diluted EPS from Continuing Operations Attributable to SMP | $0.61 | $0.81 | $0.44 | $0.45 | | Operating Income | $24,462 | $30,024 | $14,619 | $14,789 | | EBITDA without Special Items | $36,977 (EBITDA) | $42,797 | $22,739 (EBITDA) | $22,931 | [Segment-specific Reconciliation](index=10&type=section&id=Segment-specific%20Reconciliation) Provides a segment-level reconciliation of operating income and EBITDA without special items, highlighting the non-GAAP adjustments for each business unit Segment-specific Non-GAAP Operating Income and EBITDA (Q1 2025) | Segment | Non-GAAP Operating Income (in thousands) | Non-GAAP EBITDA without Special Items (in thousands) | % of Net Sales (EBITDA w/o Special Items) | | :--------------------- | :--------------------------------------- | :--------------------------------------------------- | :---------------------------------------- | | Vehicle Control | $18,326 | $22,248 | 11.6% | | Temperature Control | $7,775 | $9,401 | 10.6% | | Engineered Solutions | $3,195 | $6,410 | 9.7% | | Nissens Automotive | $7,584 | $11,467 | 17.3% | | Consolidated | $30,024 | $42,797 | 10.4% | [Condensed Consolidated Balance Sheets](index=11&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) The balance sheet shows a significant increase in total assets and liabilities as of March 31, 2025, primarily driven by the Nissens acquisition, while total stockholders' equity remained relatively stable Condensed Consolidated Balance Sheets Highlights (in thousands) | Metric | March 31, 2025 | March 31, 2024 | December 31, 2024 | | :------------------------- | :------------- | :------------- | :---------------- | | Total Current Assets | $1,016,081 | $796,436 | $921,924 | | Total Assets | $1,926,091 | $1,351,561 | $1,814,126 | | Total Current Liabilities | $437,377 | $299,212 | $436,472 | | Long-term Debt | $627,329 | $209,872 | $535,197 | | Total Liabilities | $1,273,654 | $696,440 | $1,184,044 | | Total Stockholders' Equity | $652,437 | $655,121 | $630,082 | [Condensed Consolidated Statements of Cash Flows](index=12&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Cash flows for Q1 2025 show increased cash used in operating activities and investing activities, offset by a substantial increase in cash provided by financing activities, primarily from debt Condensed Consolidated Statements of Cash Flows Highlights (in thousands) | Cash Flow Activity | Q1 2025 | Q1 2024 | | :---------------------------------------- | :------ | :------ | | Net Cash Used In Operating Activities | $(60,220) | $(45,716) | | Net Cash Used In Investing Activities | $(6,209) | $(10,071) | | Net Cash Provided By Financing Activities | $72,508 | $50,380 | | Net Increase (Decrease) In Cash And Cash Equivalents | $5,850 | $(5,413) | | Cash And Cash Equivalents At End Of Period | $50,276 | $27,113 |
Standard Motor Products, Inc. Releases First Quarter 2025 Results and Quarterly Dividend
Prnewswire· 2025-04-30 12:30
First quarter net sales of $413.4 million up 24.7%, and up 4.8% excluding Nissens First quarter adjusted EBITDA margin increased 350 basis points to 10.4% Adjusted diluted earnings per share of $0.81 in the quarter increased 80% from last year Strong North American manufacturing footprint well-positioned to help mitigate tariff impactNEW YORK, April 30, 2025 /PRNewswire/ -- Standard Motor Products, Inc. (NYSE: SMP), a leading automotive parts manufacturer and distributor, reported today its consolidated f ...
Standard Motor Products Expands Parking Brake Actuator Program
Prnewswire· 2025-04-14 18:25
Core Insights - Standard Motor Products, Inc. (SMP) is expanding its Electronic Parking Brake Actuator program, which is one of the fastest-growing categories in the automotive aftermarket [2][4] - The company offers industry-leading coverage for both import and domestic vehicles, ensuring comprehensive support for a wide range of applications [5][8] Industry Overview - Electronic parking brake actuators have replaced manually operated cable parking brakes in almost all new vehicles, becoming integral to modern electronic safety systems [4][8] - The demand for parking brake actuators is increasing, reflecting a broader trend in the automotive aftermarket towards electronic components [3][8] Product Details - Standard® Parking Brake Actuators are 100% new, never remanufactured, and designed to match original equipment (OE) performance, ensuring seamless integration with electronic safety systems [4][8] - The actuators feature a plug-and-play design, requiring no additional programming during installation, and many include necessary components for a complete repair [4][6] Recent Developments - SMP has introduced new coverage for millions of late-model vehicles, including popular models from Ford, Jeep, Mercedes-Benz, Subaru, Mazda, Audi, Volkswagen, and General Motors [5][6] - The company is providing distribution partners with training, marketing materials, and insights to leverage the growth in the parking brake actuator category [6][8] Company Background - Standard Motor Products, Inc. has over 100 years of experience in the automotive aftermarket, manufacturing and distributing premium replacement parts [8][9] - The company serves a diverse range of markets, including retailers, warehouse distributors, and original equipment manufacturers across multiple regions [9]
Standard Motor Products (SMP) Upgraded to Strong Buy: Here's What You Should Know
ZACKS· 2025-04-14 17:00
Core Viewpoint - Standard Motor Products (SMP) has received an upgrade to a Zacks Rank 1 (Strong Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][4]. Earnings Estimates and Revisions - The Zacks Consensus Estimate for SMP is projected at $3.52 per share for the fiscal year ending December 2025, reflecting an 11% year-over-year increase [9]. - Over the past three months, the Zacks Consensus Estimate for SMP has risen by 2.4%, indicating a trend of increasing earnings estimates [9]. Zacks Rating System - The Zacks rating system is based solely on a company's earnings picture, tracking EPS estimates from sell-side analysts [2]. - The system classifies stocks into five groups, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [8]. - The upgrade of SMP to Zacks Rank 1 places it in the top 5% of Zacks-covered stocks, suggesting potential for market-beating returns in the near term [11]. Market Influence - Changes in earnings estimates are strongly correlated with stock price movements, largely due to institutional investors adjusting their valuations based on these estimates [5]. - Rising earnings estimates and the corresponding rating upgrade for SMP imply an improvement in the company's underlying business, which could lead to higher stock prices [6]. Investment Implications - The Zacks rating system maintains a balanced approach, ensuring an equal proportion of 'buy' and 'sell' ratings across its universe of over 4000 stocks, which enhances the credibility of its ratings [10]. - The placement of SMP in the top 20% of Zacks-covered stocks indicates its strong earnings estimate revision feature, making it a solid candidate for investment [11].
After Plunging -17.48% in 4 Weeks, Here's Why the Trend Might Reverse for Standard Motor Products (SMP)
ZACKS· 2025-04-14 14:35
Core Viewpoint - Standard Motor Products (SMP) has experienced a significant decline of 17.5% in its stock price over the past four weeks, but it is now in oversold territory, suggesting a potential turnaround as analysts expect better earnings than previously predicted [1]. Group 1: Stock Performance and Technical Indicators - SMP's stock is currently showing signs of being oversold, with a Relative Strength Index (RSI) reading of 27.17, indicating that the heavy selling pressure may be exhausting itself [5]. - The RSI is a momentum oscillator that helps identify whether a stock is oversold, typically when the reading falls below 30 [2][3]. Group 2: Earnings Estimates and Analyst Consensus - There is a strong consensus among sell-side analysts that SMP will report better earnings, with the consensus EPS estimate increasing by 0.9% over the last 30 days [7]. - SMP holds a Zacks Rank 1 (Strong Buy), placing it in the top 5% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises, indicating a strong potential for price appreciation [8].
Down -16.88% in 4 Weeks, Here's Why Standard Motor Products (SMP) Looks Ripe for a Turnaround
ZACKS· 2025-03-26 14:35
Group 1 - Standard Motor Products (SMP) has experienced significant selling pressure, resulting in a 16.9% decline in stock price over the past four weeks, but analysts expect better earnings than previously predicted [1] - The stock is currently in oversold territory, indicated by a Relative Strength Index (RSI) reading of 28.05, suggesting a potential trend reversal [5] - There has been a 2.3% increase in the consensus EPS estimate for SMP over the last 30 days due to strong agreement among sell-side analysts, which typically correlates with price appreciation [7] Group 2 - SMP holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises, indicating a strong potential for a turnaround [8]
Standard Motor Products: Buying The Dip Is Difficult To Resist
Seeking Alpha· 2025-03-24 08:33
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