S&P 500 slips, but losses kept in check as Nvidia climbs ahead of results
In a challenging market environment, Standard Motor Products Inc (NYSE:SMP) stock has recorded a new 52-week low, dipping to $26.09. According to InvestingPro data, the stock’s RSI suggests oversold conditions, while the company maintains solid fundamentals with a current ratio of 2.11x, indicating strong liquidity. This latest price level reflects a significant retreat from more favorable positions in the past year, with the company’s stock experiencing a 1-year change with a decrease of -15.04%. Despite market challenges, SMP has maintained dividend payments for 16 consecutive years, with a current yield of 4.74%. Investors are closely monitoring SMP’s performance as it navigates through the headwinds that have pressured the automotive replacement parts sector, leading to this notable low in its stock price. The market will be watching for Standard Motor Products’ strategic responses to recover from this downturn and potentially regain its previous momentum. For deeper insights into SMP’s technical indicators and comprehensive analysis, access the full Pro Research Report available on InvestingPro.
In other recent news, Standard Motor Products Inc. reported their fourth-quarter 2024 financial results, surpassing analyst expectations. The company achieved earnings per share of $0.47, exceeding the forecasted $0.37, and reported revenue of $343 million, which was significantly higher than the anticipated $299.4 million. This marks an 18.1% increase in consolidated sales for the quarter. A key factor in this growth was the acquisition of Nissens Automotive, which contributed to the strong sales performance. Additionally, Standard Motor Products increased its quarterly dividend by 7% to $0.31 per share.
Despite the positive earnings report, the company’s stock experienced a decline. Analysts from Jefferies and Roth MKM have shown interest in the company’s strategies, particularly regarding the integration of Nissens Automotive and the potential impact of tariffs. Standard Motor Products is focusing on achieving cost synergies from the Nissens acquisition and aims to reduce its leverage to less than 2x EBITDA by the end of 2026. Looking ahead, the company expects mid-teens sales growth for 2025, with an adjusted EBITDA target of 10-11%.
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