Cooper Tire & Rubber
by Zacks Equity ResearchDecember 04, 2012 | Comments : 0 Recommended this article: (0)
This page is temporarily not available. Please check later as it should be available shortly. If you have any questions, please email customer support at email@example.com or call 800-767-3771 ext. 9339.
Solid Earnings Growth in Q3
On November 2, Cooper Tire & Rubber posted a more than four fold increase in earnings for its third quarter to $74.1 million or $1.17 per share, compared to last years $17.3 million or $0.27. EPS trounced the Zacks Consensus Estimate by nearly 35%.
Revenues in the quarter increased 4.5% year over year to $1.10 billion, driven by higher sales in North America.
Cost of goods sold fell 6.6% to $897.5 million in the quarter. As a result, both gross profits and operating profits more than doubled to $198.2 million and $129.6 million, respectively, from the prior year levels. Furthermore, management expects raw material prices to remain flat in the fourth quarter compared to the third quarter of the year.
Earnings Momentum Climbing
The Zacks Consensus Estimate for 2012 is at $3.09 per share, gaining 20.7% in the past month as all 6 estimates were revised higher. For 2013, the Zacks Consensus Estimate rose 8.1% to $3.22 in the same timeframe, based on upward revisions from 5 of 7 estimates.
The estimates for 2012 and 2013 suggest year-over-year growth of 157.8% and 4.1%, respectively.
A Look at the Chart
Cooper Tires stock price has doubled year-to-date, as its strong product portfolio, favorable demand environment and improved manufacturing efficiencies helped lower costs.
The chart shows the formation of a new trend in the first quarter of 2012 when the 50-day moving average crosses above the 200-day moving average . Furthermore, the rising 200-day moving average undoubtedly signals optimism.
Volume is fairly strong, averaging roughly 1,137K daily. The 1-year return for the stock is 90.1%, which is substantially higher than the S&P 500s 21.2%.
Founded in 1914 and headquartered in Findlay, Ohio, Cooper Tire & Rubber Co. manufactures tires and related products for passenger vehicles and light trucks. The $1.6 billion company has 9 manufacturing facilities and 38 distribution centers located in 11 countries across the globe. It is the ninth largest tire company in the world and fourth largest in North America in terms of sales.
Want More of Our Best Recommendations?
Zacks' Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Then each week he hand-selects the most compelling trades and serves them up to you in a new program called Zacks Confidential.
Please login to Zacks.com or register to post a comment.