Standard Motor Profit Tops Street; Stock Up - Update

(RTTNews) - Auto parts maker Standard Motor Products Inc. (SMP), Monday reported a higher fourth-quarter profit on growth at engine management segment as well as improved margins. Both earnings and revenue for the quarter topped Wall Street estimates.

Shares of Standard Motor jumped about 11 percent in morning trade on the New York Stock Exchange.

Long Island City, New York-based Standard Motor posted fourth-quarter net income of $9 million or $0.38 per share versus $6 million or $0.26 per share last year.

Excluding items, adjusted earnings for the quarter were $9.7 million or $0.42 per share, compared with $6.6 million or $0.28 per share a year ago. On average, four analysts polled by Thomson Reuters estimated earnings of $0.33 per share for the quarter. Analysts' estimates typically exclude special items.

Sales for the quarter climbed 13.7 percent to $218.7 million from $192 million in the prior year. Analysts estimated sales of $194.06 million for the quarter.

Growth was fueled by certain Engine Management customers broadening their product lines for commercial business. The company continues to forecast annual growth in the low to mid single digit range.

Meanwhile temperature control segment sales were soft due mainly to a mild summer season, the company said.

Gross margin for the was higher by 40 basis points at 30.5 percent.

The company also announced a share repurchase of up to $10 million of its common stock.

The company's stock is trading at $35.58, up $3.42 or 10.63%.