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Cooper Tire's (CTB) Q1 Earnings, Revenues Miss Estimates
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Cooper Tire & Rubber Co. posted earnings of 16 cents per share in the first quarter of 2018, missing the Zacks Consensus Estimate of 60 cents. The bottom line was also lower than the prior-year quarter’s figure of 57 cents per share. Results were impacted by high manufacturing costs and weak volumes.
Cooper Tire recorded net sales of $601 million, missing the Zacks Consensus Estimate of $643 million. Moreover, the year-ago quarter’s net sales were $643 million as well.
Operating profit was $26 million in the first quarter of 2018, down 54.4% from the year-ago quarter.
Segment Details
Americas Tire Operations registered 8.7% decrease in net sales to $485 million. Operating profit in this segment declined 55.9% to $31 million while operating margin decreased from 13.3% to 6.4%.
International Tire Operations registered 13.6% rise in revenues to $161 million. Operating profit was $7 million, increasing from $3 million in the year-ago quarter. Operating margin rose to 4.6% from 2.1% in the year-ago quarter.
Financial Position
Cooper Tire had cash and cash equivalents of $213 million as of Mar 31, 2018, down from $365 million as of Dec 31, 2017. Capital expenditures increased to $60 million in the first quarter of 2018 from $45 million in the year-ago quarter.
Share Repurchases
In February 2017, Cooper Tire increased the share-repurchase amount by $300 million and extended it till December 2019. During the first quarter of 2018, the company spent $16 million on repurchasing 469,581 shares at a price of $33.15 per share. Between August 2014 and Mar 31, 2018, Cooper Tire brought back 15.2 million shares at an average price of $34.38 per share.
Cooper Tire & Rubber Company Price, Consensus and EPS Surprise
The company expects 2018 operating- profit margin guidance to remain similar to the previous guidance of 9-11%.
For 2018, capital expenditures are expected to be $200-$220 million, down from the previous guidance of $215-$235 million. The effective tax rate for the year is expected to be 23-26%.
Cooper Tire currently has a Zacks Rank #3 (Hold).
Some better-ranked stocks in the same space include Fox Factory Holding Corp. (FOXF - Free Report) , Allison Transmission Holdings, Inc. (ALSN - Free Report) and Yamaha Motor Co., Ltd. (YAMHF - Free Report) , each carrying a Zacks Rank #2 (Buy).
Fox Factory Holding has expected long-term growth rate of 10.5%. In the past year, shares of the company have returned 10.1%.
Allison Transmission has expected long-term growth rate of 10%. In a year, shares of the company have advanced 1.6%.
Yamaha Motor has an expected long-term growth rate of 10.1%. In a year, shares of the company have returned 36.7%.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
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Cooper Tire's (CTB) Q1 Earnings, Revenues Miss Estimates
Cooper Tire & Rubber Co. posted earnings of 16 cents per share in the first quarter of 2018, missing the Zacks Consensus Estimate of 60 cents. The bottom line was also lower than the prior-year quarter’s figure of 57 cents per share. Results were impacted by high manufacturing costs and weak volumes.
Cooper Tire recorded net sales of $601 million, missing the Zacks Consensus Estimate of $643 million. Moreover, the year-ago quarter’s net sales were $643 million as well.
Operating profit was $26 million in the first quarter of 2018, down 54.4% from the year-ago quarter.
Segment Details
Americas Tire Operations registered 8.7% decrease in net sales to $485 million. Operating profit in this segment declined 55.9% to $31 million while operating margin decreased from 13.3% to 6.4%.
International Tire Operations registered 13.6% rise in revenues to $161 million. Operating profit was $7 million, increasing from $3 million in the year-ago quarter. Operating margin rose to 4.6% from 2.1% in the year-ago quarter.
Financial Position
Cooper Tire had cash and cash equivalents of $213 million as of Mar 31, 2018, down from $365 million as of Dec 31, 2017. Capital expenditures increased to $60 million in the first quarter of 2018 from $45 million in the year-ago quarter.
Share Repurchases
In February 2017, Cooper Tire increased the share-repurchase amount by $300 million and extended it till December 2019. During the first quarter of 2018, the company spent $16 million on repurchasing 469,581 shares at a price of $33.15 per share. Between August 2014 and Mar 31, 2018, Cooper Tire brought back 15.2 million shares at an average price of $34.38 per share.
Cooper Tire & Rubber Company Price, Consensus and EPS Surprise
Cooper Tire & Rubber Company Price, Consensus and EPS Surprise | Cooper Tire & Rubber Company Quote
Outlook
The company expects 2018 operating- profit margin guidance to remain similar to the previous guidance of 9-11%.
For 2018, capital expenditures are expected to be $200-$220 million, down from the previous guidance of $215-$235 million. The effective tax rate for the year is expected to be 23-26%.
Cooper Tire currently has a Zacks Rank #3 (Hold).
Some better-ranked stocks in the same space include Fox Factory Holding Corp. (FOXF - Free Report) , Allison Transmission Holdings, Inc. (ALSN - Free Report) and Yamaha Motor Co., Ltd. (YAMHF - Free Report) , each carrying a Zacks Rank #2 (Buy).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Fox Factory Holding has expected long-term growth rate of 10.5%. In the past year, shares of the company have returned 10.1%.
Allison Transmission has expected long-term growth rate of 10%. In a year, shares of the company have advanced 1.6%.
Yamaha Motor has an expected long-term growth rate of 10.1%. In a year, shares of the company have returned 36.7%.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>