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Investing.com -- Standard Motor Products, Inc. (NYSE:SMP) saw its shares jump 7.6% after reporting first quarter earnings that significantly exceeded analyst expectations, driven by robust sales growth and margin expansion across its business segments.
The automotive parts manufacturer posted adjusted earnings per share of $0.81 for Q1 2025, handily beating the analyst consensus of $0.48. Revenue surged 24.7% YoY to $413.4 million, also topping estimates of $366.23 million. Excluding the recent acquisition of Nissens Automotive, organic sales grew 4.8% compared to the prior year period.
Standard Motor Products’ adjusted EBITDA margin expanded 350 basis points to 10.4% in the quarter. The company attributed the strong profitability improvement to higher sales leverage, cost containment initiatives, and the addition of the higher-margin Nissens business.
"We are very pleased with the first quarter results which exceeded our expectations," said Eric Sills, Chairman and CEO of Standard Motor Products. "Sales for the quarter were up nearly 25%, and excluding the impact of the recent acquisition of Nissens Automotive, sales were up nearly 5%."
The company maintained its full-year 2025 guidance for mid-teens revenue growth and adjusted EBITDA margin of 10-11%, excluding potential tariff impacts. Management noted over half of its U.S. sales come from North American-manufactured products that are currently largely tariff-free.
Standard Motor Products declared a quarterly dividend of $0.31 per share, payable on June 2, 2025 to shareholders of record as of May 15, 2025.
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