NYSE$SMP

Standard Motor Products Inc · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

SMP's financial performance for Q2 2024 was announced, demonstrating notable sales growth across all segments and strategic acquisition progress.

Standard Motor Products reported a 10.4% increase in net sales for Q2 2024 compared to the same quarter last year, with significant growth in Temperature Control segment. The company is also progressing with the acquisition of Nissens, expected to close by the end of 2024.

  • Net sales increased by 10.4% compared to Q2 2023, reaching $389.8 million.
  • Earnings from continuing operations were $18.0 million, or $0.81 per diluted share.
  • Temperature Control sales increased by 28.2%, setting an all-time quarterly sales record.
  • A definitive agreement to acquire AX V Nissens III APS was announced for approximately $388 million in cash.

Headline financials

Total Revenue

$390M

Previous: $353M+10.4%
EPS

$0.77

Previous: $0.84-8.3%
Adjusted EBITDA Margin

10.1%

Previous: 10.0%+1.0%
Capital Expenditures

-$22.9M

Previous: -$9.51M-141.3%
Free Cash Flow

-$5.88M

Previous: -$370K-1488.6%
Net Income

$17.1M

Previous: $9.14M+86.7%
Operating Income

$25M

Previous: $27.2M-8.1%
Gross Profit

$111M

Previous: $101M+10.1%
Cash & Equivalents

$26.2M

Previous: $23M+13.6%
Total Assets

$1.37B

Previous: $1.3B+5.5%
Stock-Based Comp

$1.78M

Previous: $2.1M-15.3%

Revenue & EPS history

SMP · Revenue · Quarterly

$390M

Q2 2024+10.4%vs Q2 2023
Beat estimate in 11 of 15 quarters(73%)
ActualEstimate

Revenue by segment

SMP · $386M total across 3 segments · Q3 2023

  • Vehicle Control
    $191M
  • Temperature Control
    $124M
  • Engineered Solutions
    $71.8M

Forward guidance

For the full year 2024, excluding the impact of the Nissens acquisition, SMP anticipates sales growth in the low- to mid-single digits and an Adjusted EBITDA margin in the range of 9.0-9.5%.

Tailwinds

  • Sales growth anticipated in the low- to mid-single digits.
  • Aftermarket fundamentals remain positive.
  • Engineered Solutions business is performing well.
  • Excitement surrounding the planned acquisition of Nissens.
  • Acquisition of Nissens expands geographic presence.

Headwinds

  • Expect to incur roughly $3-4 million of additional start-up costs for new distribution center.
  • Cost pressures persist.
  • One-time severance costs of approximately $6 million related to the early retirement program.
  • $3.1 million is expected to be incurred in the second half of 2024 as people retire related to the retirement program.
  • Operating income was impacted by a roughly $1.0 million increase in customer factoring program expense.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2024

Historical avgQ2 2024

-0.5%

Avg return

Earnings day

-0.5%

Avg return

5 days after

-1.4%

Avg return

30 days after

43%

28 / 65 earnings

Positive

+24.2%

Q2 2012

Best reaction

-19.6%

Q2 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+1.3%+6.0%+6.1%
Q4 2025-8.7%-9.6%-16.9%
Q3 2025-2.7%-6.9%-5.9%
Q1 2025+11.2%+15.4%+24.4%
Q4 2024-5.5%-6.8%-17.8%
Q3 2024+12.3%+13.0%+14.7%
Q2 2024-0.1%-6.0%-1.3%
Q1 2024+0.2%+1.1%-4.3%
Q4 2023-16.8%-17.4%-17.5%
Q3 2023+8.6%+11.3%+11.8%
Q2 2023-6.0%-0.6%-2.6%
Q1 2023+0.1%+3.0%+4.0%
Q4 2022-1.1%-2.9%-10.5%
Q3 2022+2.5%-1.4%+5.3%
Q2 2022-19.6%-18.8%-23.1%
Q1 2022-1.6%-5.5%-3.9%
Q4 2021-9.1%-8.6%-7.5%
Q3 2021+0.9%+2.8%+8.1%
Q2 2021+0.0%+1.3%+0.4%
Q1 2021+6.7%+6.4%+7.7%
Q4 2020-3.4%-1.1%+0.8%
Q3 2020+0.9%+0.8%+1.3%
Q2 2020+17.5%+18.0%+17.4%
Q1 2020-6.8%-12.4%-2.5%
Q4 2019+1.9%-6.7%-26.6%
Q3 2019+1.7%+4.9%-2.2%
Q2 2019+2.1%+0.5%-4.2%
Q1 2019-7.3%-2.4%-14.8%
Q4 2018-4.6%-3.1%-6.4%
Q3 2018+23.3%+22.8%+18.6%
Q2 2018-4.0%+2.1%+6.7%
Q1 2018-1.9%-3.8%+0.0%
Q4 2017+4.9%+4.0%-3.9%
Q3 2017-2.3%-6.0%-6.5%
Q2 2017-6.2%-13.2%-16.6%
Q1 2017-1.1%-1.0%-1.6%
Q4 2016-3.8%-2.9%-2.9%
Q3 2016-0.3%-0.4%+7.8%
Q2 2016+4.1%+3.3%+9.2%
Q1 2016+6.8%
Q4 2015-18.1%
Q3 2015+9.7%
Q2 2015+9.2%
Q1 2015-10.3%
Q4 2014+5.8%
Q3 2014-1.4%
Q2 2014-11.6%
Q1 2014+0.1%
Q4 2013+11.1%
Q3 2013+0.7%
Q2 2013-8.7%
Q1 2013-0.9%
Q4 2012+11.0%
Q3 2012+9.1%
Q2 2012+24.2%
Q1 2012+2.1%
Q1 2011-7.1%
Q4 2009-1.8%
Q4 2011-1.8%
Q3 2011-2.3%
Q3 2010-2.3%
Q4 2010-7.5%
Q2 2010-7.5%
Q2 2011-7.5%
Q1 2010-19.4%

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