Standard Motor Products Q3 sales miss estimates on temperature control unit weakness

Overview

• US automotive parts maker's Q3 net sales rose yr/yr but missed analyst expectations

• Adjusted diluted EPS for Q3 rose 13% yr/yr

• Company reaffirmed full-year guidance for sales growth and EBITDA margin

Outlook

• Company reaffirms 2026 full-year sales growth in low to mid-single digit range

• Standard Motor Products expects 2026 adjusted EBITDA margin of 11%-12%

• Company says outlook excludes impact of tariff changes, significant inflation or higher interest rates

Result Drivers

• VEHICLE CONTROL SEGMENT - Adjusted net sales in Vehicle Control rose 6% in Q3, driven by strong customer sell-in and demand across categories, aided by easier year-over-year comparison

• NISSENS SEGMENT - Nissens adjusted net sales rose 7.6% in Q3, helped by sales growth in local currency and record temperatures in certain end-markets, partially offset by currency conversion headwind

• TEMPERATURE CONTROL SEGMENT - Temperature Control adjusted net sales fell 4.1% in Q3, reflecting a tough comparison with last year's record quarter; solid sell-through of previously purchased inventory supported segment performance

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the auto, truck & motorcycle parts peer group is "buy"

• Wall Street's median 12-month price target for Standard Motor Products Inc is $48.00, about 25.5% above its October 29 closing price of $38.25

• The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 8 three months ago

Reuters Recommended Reads

• Oct 29 - BorgWarner beats Q3 adjusted EPS estimates, lifts 2026 outlook

• Oct 29 - Garrett Motion Q3 sales rise on commercial vehicle demand

• Oct 29 - Industrial supplier PHINIA Q3 sales rise on aftermarket momentum

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)