Shares of Findlay, Ohio-based Cooper Tire & Rubber (NYSE:CTB) dropped 0.7% in Thursday trading, following a second-quarter earnings report that showed the company missing badly on both revenues and earnings.
Cooper reported earning $0.55 per share on $884 million in revenues. This represented declines of 33%, and 16%, respectively, in comparison to results from the year-ago quarter. Analysts following Cooper had predicted the company would earn $0.93 per share on $973 million in revenues.
Ordinarily, an earnings miss of this magnitude would probably have resulted in a more drastic reaction from investors. However, the fact that Cooper is in the process of selling itself to a subsidiary of India's Apollo Tyres, Ltd., makes the company's results as a stand-alone entity less relevant to investors today. Assuming Cooper's results do not scare off Apollo from proceeding with its buyout, at least, investors can probably trust to the buyout's $2.5 billion price tag to prevent too much erosion from the company's current $2.1 billion market cap.
Fool contributor Rich Smith has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. 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.