NYSE:SMPAuto Components
Standard Motor Products (SMP) Margin Miss Challenges Bullish Narratives Despite Earnings Turnaround
Standard Motor Products (SMP) posted a 9.8% increase in earnings over the past year, a sharp reversal from its five-year trend of an average annual decline of 11.7%. Despite this upturn, net profit margins slipped to 4% from 4.3% a year earlier, and Wall Street is now bracing for a 25.4% per year decline in earnings over the next three years, even as revenue is projected to grow 6.3% annually, which lags behind the broader US market’s 10.3% pace. With shares trading at $37.13, well above an...