- Standard Motor Products Inc (NYSE:SMP) reported first-quarter FY22 sales growth of 16.7% year-on-year to $322.83 million, beating the consensus of $304.30 million.
- Engine Management segment revenue rose 12.8% Y/Y, and Temperature Control segment sales gained 30.2%.
- Gross profit rose 7.2% Y/Y to $89.8 million with a gross margin of 27.8%.
- The operating margin was 8.3%, and operating income for the quarter fell 8.2% to $26.9 million.
- SMP held $19.99 million in cash and equivalents as of March 31, 2022.
- Adjusted EPS of $0.92 beat the analyst consensus of $0.71.
- The company's board has approved a quarterly dividend of $0.27 per share, payable on June 1, 2022, to stockholders of record on May 16, 2022. It has $22.8 million remaining under its current share repurchase authorization.
- "In closing, we are pleased with our momentum as we exit the first quarter, and remain cautiously optimistic for the balance of the year. We understand that there are various headwinds including ongoing inflation, increased borrowing costs, supply chain disruption, and an eventual normalization of demand," said CEO Eric Sills.
- The company also noted that it would take more pricing actions in 2022 to match its elevated expenses during this volatile inflationary environment.
- SMP expects consolidated gross margin of 28%-29% for the full year.
- Price Action: SMP shares are trading lower by 3.55% at $41.27 on the last check Tuesday.
