Standard Motor Products Earnings Preview

Standard Motor Products SMP announces its next round of earnings this Wednesday, May 05. Here is Benzinga's everything-that-matters guide for this Wednesday's Q1 earnings announcement.

What Are Earnings, Net Income, And Earnings Per Share?

Earnings and especially earnings per share (EPS) are useful measures of a company's profitability. Total earnings, which is also referred to as net income, equals total revenue minus total expenses. EPS equals to net income divided by the number of shares outstanding.

Earnings And Revenue

Based on Standard Motor Products management projections, analysts predict EPS of $0.54 on revenue of $257.57 million. In the same quarter last year, Standard Motor Products reported EPS of $0.43 on revenue of $254.30 million.

What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?

Analysts who cover this company will publish forward-looking estimates of its revenue and EPS each quarter. Averaging together every EPS and revenue prediction that each analyst makes about a company in a quarter yields the "consensus estimates." A company posting earnings or revenue above or below the consensus estimate is known as an "earnings surprise" and may move the stock by a considerable margin.

If the company were to match the consensus estimate, earnings would be up 25.58%. Revenue would be up 1.29% from the same quarter last year. Here is how the company's reported EPS has compared to analyst estimates in the past:

Stock Performance

Over the last 52-week period, shares are up 15.47%. Given that these returns are generally positive, long-term shareholders can be content going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Standard Motor Products is scheduled to hold the call at 11:00:00 ET and can be accessed here.