Standard Motor Products Earnings: Here’s Why Investors are Selling Shares Now

Standard Motor Products Inc. (NYSE:SMP) delivered a profit and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 11.29 %.

Standard Motor Products Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 18.64% to $0.7 in the quarter versus EPS of $0.59 in the year-earlier quarter.

Revenue: Rose 0.45% to $270.1 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Standard Motor Products Inc. reported adjusted EPS income of $0.7 per share. By that measure, the company missed the mean analyst estimate of $0.76. It missed the average revenue estimate of $280.05 million.

Quoting Management: Commenting on the results, Mr. Lawrence I. Sills, Standard Motor Products’ Chairman and Chief Executive Officer, stated, “We are pleased with our second quarter results. We continued to show significant improvement in net earnings and earnings per share for the quarter and for six months.”

Key Stats (on next page)…

Revenue increased 17.07% from $230.71 million in the previous quarter. EPS increased 66.67% from $0.42 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $0.8 to a profit $0.81. For the current year, the average estimate has moved up from a profit of $2.22 to a profit of $2.33 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)