Cooper Tire & Rubber
The 10-second takeaway
For the quarter ended March 31 (Q1), Cooper Tire & Rubber whiffed on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue contracted. GAAP earnings per share grew significantly.
Margins expanded across the board.
Cooper Tire & Rubber logged revenue of $861.7 million. The four analysts polled by S&P Capital IQ expected sales of $965.0 million on the same basis. GAAP reported sales were 12% lower than the prior-year quarter's $984.3 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.87. The seven earnings estimates compiled by S&P Capital IQ predicted $0.69 per share. GAAP EPS of $0.87 for Q1 were 156% higher than the prior-year quarter's $0.34 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 18.3%, 760 basis points better than the prior-year quarter. Operating margin was 11.2%, 640 basis points better than the prior-year quarter. Net margin was 6.5%, 430 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $976.3 million. On the bottom line, the average EPS estimate is $0.95.
Next year's average estimate for revenue is $4.03 billion. The average EPS estimate is $3.32.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 231 members out of 280 rating the stock outperform, and 49 members rating it underperform. Among 78 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 65 give Cooper Tire & Rubber a green thumbs-up, and 13 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Cooper Tire & Rubber is outperform, with an average price target of $29.71.
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