Standard Motor to Repurchase Shares - Analyst Blog
August 31 2011 - 7:45AM
Zacks
Standard Motor Products, Inc. (SMP) announced
that its Board of Directors recently authorized the purchase of up
to $5 million of its common stock under a stock repurchase
program.
Stock will be purchased from time to time in the open market or
through private transactions and can be suspended or discontinued
if required. The company plans to fund the program with its
revolving credit facility.
In the last reported quarter, adjusted earnings of Standard
Motor stood at $11.4 million or 49 cents per share, compared with
$8.7 million or 38 cents per share in the year-ago quarter.
Consolidated net sales in the quarter grew 5.6% to $244.0
million from $231.0 million in the corresponding quarter of 2010.
Both business segments saw modest improvements in their sales.
The company recently strengthened its Engine Management product
line by utilizing BLD Products’ wide product portfolio and broad
customer base. The Engine Control business of BLD Products Ltd. was
acquired by Standard Motor in April 2011.
The company had a gross profit of $63.2 million compared with a
gross profit of $58.4 million in the comparable quarter of 2010.
The improvement was primarily driven by the company’s efficient
cost management efforts, such as relocating to low cost
manufacturing sites, purchasing product from low cost areas and
reducing overhead.
Standard Motor’s cash balance improved slightly to $13.1 million
as of June 30, 2011 from $12.1 million as of December 31, 2010.
Long-term debt was reported at $258,000 at the end of the second
quarter of 2011 versus $307,000 as of December 31, 2010.
The Long Island City, New York-based Standard Motor is one of
the leading manufacturers, distributors and marketers of automotive
replacement parts in the U.S. and enjoys a strong
competitive advantage due to its brand recognition and customer
base. Moreover, it is not significantly exposed to the cyclicality
of the automotive industry since it is focused on the aftermarket,
where it is a leading niche player.
However,
high customer concentration, weak pricing in the Temperature
Control segment and intensifying competition may hamper its growth
in the coming years. The company’s key competitors include
Federal-Mogul Corporation (FDML), Robert Bosch
Corporation and Visteon Corporation (VC).
Shares of Standard Motor are maintaining a Zacks #3 Rank, which
translates into a short-term Hold rating.
FEDERAL MOGUL-A (FDML): Free Stock Analysis Report
STANDARD MOTOR (SMP): Free Stock Analysis Report
VISTEON CORP (VC): Free Stock Analysis Report
Zacks Investment Research
Visteon (NASDAQ:VC)
Historical Stock Chart
From Jun 2024 to Jul 2024
Visteon (NASDAQ:VC)
Historical Stock Chart
From Jul 2023 to Jul 2024