Cooper Tire & Rubber
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Cooper Tire & Rubber beat expectations on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue increased and GAAP earnings per share increased significantly.
Gross margins dropped, operating margins dropped, net margins improved.
Cooper Tire & Rubber reported revenue of $1.05 billion. The five analysts polled by S&P Capital IQ expected to see a top line of $1.02 billion on the same basis. GAAP reported sales were 14% higher than the prior-year quarter's $919.6 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.67. The eight earnings estimates compiled by S&P Capital IQ forecast $0.39 per share on the same basis. GAAP EPS of $3.33 for Q4 were 412% higher than the prior-year quarter's $0.65 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 10.9%, 130 basis points worse than the prior-year quarter. Operating margin was 5.7%, 30 basis points worse than the prior-year quarter. Net margin was 20.0%, 1,560 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $1.02 billion. On the bottom line, the average EPS estimate is $0.35.
Next year's average estimate for revenue is $4.27 billion. The average EPS estimate is $1.79.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 180 members out of 229 rating the stock outperform, and 49 members rating it underperform. Among 67 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 56 give Cooper Tire & Rubber a green thumbs-up, and 11 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 $18.67.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.