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 grew slightly. GAAP earnings per share shrank significantly.
Gross margins expanded, operating margins increased, net margins dropped.
Cooper Tire & Rubber booked revenue of $1.06 billion. The five analysts polled by S&P Capital IQ foresaw revenue of $1.03 billion on the same basis. GAAP reported sales were the same as the prior-year quarter's.
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 $1.15. The eight earnings estimates compiled by S&P Capital IQ forecast $0.86 per share. GAAP EPS of $1.15 for Q4 were 65% lower than the prior-year quarter's $3.32 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 18.1%, 720 basis points better than the prior-year quarter. Operating margin was 11.7%, 600 basis points better than the prior-year quarter. Net margin was 6.9%, much worse than the prior-year quarter.
Next quarter's average estimate for revenue is $999.9 million. On the bottom line, the average EPS estimate is $0.80.
Next year's average estimate for revenue is $4.32 billion. The average EPS estimate is $3.13.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 225 members out of 275 rating the stock outperform, and 50 members rating it underperform. Among 80 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 70 give Cooper Tire & Rubber a green thumbs-up, and 10 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 $28.21.
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