Standard Motor Products, Inc. ( SMP ) shares are trading lower on Friday after reporting third-quarter adjusted earnings per share of $1.36, beating the analyst consensus estimate of $1.30.

Quarterly sales of $498.836 million, missing the Street view of $503.33 million.

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Sales were up 24.9% year over year, and up 3.8% excluding Nissens.

“This reflects an ongoing trend, as year-to-date we are up 25.5%, or 4.0% excluding Nissens,” said CEO Eric Sills. “Additionally, adjusted non-GAAP diluted earnings per share grew 6.3% for the quarter and 27.8% for the year.”

North American Aftermarket Segments

Vehicle Control sales were down 1.6% in the third quarter, against a difficult comparison, and impacted by softness in the wire category, which is in secular decline.

Temperature Control sales increased 14.8%, continuing the strong sales pattern experienced throughout the year. 

Nissens

Nissens posted another solid quarter, contributing sales of $84.5 million with an adjusted EBITDA margin of 16.8%.

Engineered Solutions

Sales in the Engineered Solutions segment were essentially flat in the quarter, reflecting a leveling off in certain end markets. 

Other Metrics

Gross profit in the quarter under review was $161.794 million, higher than $121.366 million a year ago. Quarterly gross margin expanded to 32.4% from 30.4%.

Adjusted EBITDA for the quarter increased to $61.7 million, up from $48.7 million last year, driven by strong performance in our Temperature Control segment.

Quarterly operating income was $47.636 million, higher than $37.139 million a year ago. Margins expanded to 9.5% from 9.3%.

The company exited the quarter with cash worth $87.201 million.

The company says its global footprint limits tariff exposure, with over half of U.S. sales from largely tariff-free USMCA products.

For other goods, it’s offsetting tariffs through supplier cost-sharing, re-sourcing, and pass-through pricing, which largely neutralized costs from the third quarter onward.

Outlook

The company lifted its full-year sales growth outlook to the low-to-mid-20% range, up from the low-20% range.

It also narrowed its adjusted EBITDA margin forecast to 10.5%–11%, compared with the earlier 10%–11% range.

Price Action: SMP shares are trading lower by 5.97% to $36.72 at last check Friday.

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