Standard Motor Surpasses Q4 Earnings Estimates, Hikes Dividend

Core Viewpoint - Standard Motor Products (SMP) reported strong fourth-quarter 2024 results, with adjusted earnings per share (EPS) of 47 cents, exceeding estimates and showing year-over-year growth from 37 cents [1][2]. Financial Performance - Total revenues increased to $343 million from$291 million in the fourth quarter of 2023, surpassing the Zacks Consensus Estimate of $297 million [2]. - Gross profit rose to$101 million from $81.5 million year-over-year [2]. - Operating income decreased to$3.9 million from $9.9 million in the prior-year quarter [2]. Segmental Results - Vehicle Control segment revenues were$187.4 million, up 4.9% year-over-year, beating estimates due to strong demand; operating income was $17.2 million, slightly down from$17.4 million [3]. - Temperature Control segment revenues reached $58 million, up from$44.6 million year-over-year, with an operating income of $3.8 million compared to an operating loss of$3.3 million [4]. - Engineered Solutions segment revenues totaled $62.2 million, down 7.9$1.9 million from $1.04 million [5]. - Nissens Automotive segment revenues were$35.7 million, with an operating income of $385,000 [5]. - Other segment reported an operating loss of$5.5 million, wider than the loss of $3.9 million in the prior year [5]. Financial Position - As of December 31, 2024, the company had$44.4 million in cash, up from $32.5 million a year earlier [6]. - Long-term debt increased to$535.2 million from $151.2 million year-over-year [6]. - Net cash provided by operating activities was$76.7 million at the end of the fourth quarter [6]. - SG&A expenses rose by 22.7% to $86.3 million [6]. Dividend and Guidance - The company increased its quarterly dividend by 6.9% to 31 cents per share, payable on March 3, 2025 [7]. - For 2025, SMP expects sales growth in the mid-teens and adjusted EBITDA to be in the range of 10-11% of total revenues [8].