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]

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].

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].

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]

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A downtrend has been apparent in Standard Motor Products (SMP) lately with too much selling pressure. The stock has declined 10.2% over the past four weeks. However, given the fact that it is now in oversold territory and Wall Street analysts are majorly in agreement about the company's ability to report better earnings than they predicted earlier, the stock could be due for a turnaround.Here is How to Spot Oversold StocksWe use Relative Strength Index (RSI), one of the most commonly used technical indicato ...

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Core Viewpoint - Standard Motor Products, Inc. is conducting its Fourth Quarter 2024 Earnings Conference Call to discuss its performance and financial results for the quarter [1][2]. Group 1: Company Overview - The call features key company participants including Eric Sills, Chairman and CEO, Nathan Iles, CFO, and Jim Burke, COO [2][3]. - The agenda includes an overview of performance by Eric Sills, followed by a financial results discussion by Nathan Iles, and concluding remarks with a Q&A session [3]. Group 2: Financial Performance - The conference call is expected to provide insights into the company's financial performance for the fourth quarter of 2024, although specific financial metrics are not detailed in the provided text [1][4].

Financial Data and Key Metrics Changes - Adjusted diluted earnings per share increased by 27% in Q4 and 8.6% for the full year [7][29] - Consolidated sales increased by 18.1% in Q4 and net sales for the full year were up 7.8%, with a 5.1% increase excluding Nissens [29][30] - Gross margin rate improved to 29.1% for the full year, driven by the Temperature Control business and the addition of Nissens [30] Business Line Data and Key Metrics Changes - Vehicle Control segment net sales in Q4 were $187.4 million, up 4.9%, with a full-year increase of 3.3% [22][8] - Temperature Control segment sales increased by 30% in Q4 and 12.5% for the full year, benefiting from favorable weather [24][10] - Engineered Solutions segment sales decreased by 7.9% in Q4 but increased by 1% for the full year due to new business wins [25][11] Market Data and Key Metrics Changes - The aftermarket, representing over 80% of the business, is expected to remain resilient amid economic uncertainty [41][42] - Nissens Automotive contributed $35.7 million in net sales and $3.2 million in adjusted EBITDA for the two months post-acquisition [26][14] Company Strategy and Development Direction - The company is focused on integrating Nissens Automotive and targeting $8 million to $12 million in cost reduction synergies within 24 months [17][16] - The strategy includes expanding product offerings and identifying complementary product categories across regions [18][19] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of the aftermarket business despite potential tariff impacts [41][43] - The company anticipates mid-teen percentage growth for 2025, driven by Nissens and favorable North American aftermarket dynamics [36][37] Other Important Information - Cash generated from operations was $76.7 million, down from $144.3 million the previous year due to inventory normalization [33] - The company plans to maintain its dividend, increasing it to $0.31 per share, reflecting a nearly 7% increase [39] Q&A Session Summary Question: Contribution of Nissens to guided growth for '25 - Management expects cost synergies to materialize in 2025, but revenue synergies will take longer to realize [51][52] Question: Customer inventory levels and purchasing behavior - Management noted flat POS for Vehicle Control and strong POS for Temperature Control, with no significant pull forward in purchasing due to tariffs [56][58] Question: Inflation expectations for '25 - Management anticipates low single-digit inflation, aligning with customer expectations [60][62] Question: Exposure to tariffs across regions - The company has a global manufacturing presence and plans to pass through tariff costs to customers [68][70] Question: Performance of Nissens' segments - All three segments of Nissens are performing well, with engine cooling being the largest category [72][74] Question: Update on new facility in Kansas - The new facility is progressing well, with automation installation expected to be completed by the end of 2025 [78][79] Question: Growth expectations excluding Nissens - Management sees healthy trends in legacy businesses, with some lumpiness expected in Engineered Solutions [85][87] Question: Approach to artificial intelligence efficiencies - The company is exploring various applications of AI to improve efficiency and product offerings [99][100]