Cooper Tire & Rubber Company reported fourth-quarter 2020 adjusted earnings of 75 cents per share, which lagged the Zacks Consensus Estimate of 92 cents. The underperformance was attributed to weaker-than expected revenues and income from the American Tire Operations segment. The bottom line also declined from earnings per share of $1.02 recorded in the prior-year quarter. The company’s net sales slipped 3% year over year to $728.3 million for fourth-quarter 2020, mainly due to lower unit volumes. The reported figure also missed the Zacks Consensus Estimate of $748 million.
Key Takeaways
Net sales in Americas Tire Operations tailed off 3.9% year over year to $629 million on lower unit volume and unfavorable currency translations. The reported figure also missed the Zacks Consensus Estimate of $656 million. Operating profit in the segment declined 14% from the year-ago quarter to $72 million and fell short of the consensus mark of $77 million. Operating margin was 11.4% compared with the prior-year quarter’s 12.9%.
Revenues in International Tire Operations grew 14% from a year ago to $136 million due to higher unit volume and favorable forex impact. The unit registered operating profit of $3 million against operating loss of $6 million posted in the year-ago quarter. Operating margin was 2.4% versus negative 5% reported in the prior-year quarter.
Cooper Tire had cash and cash equivalents of $625.7 million as of Dec 31, 2020 compared with $391.3 million recorded in the comparable year-ago period. Capital expenditure for fourth-quarter 2020 increased to $55 million from the year-ago level of $47 million. As of Dec 31, 2020, long-term debt and finance leases amounted to $314.3 million, up from $309 million recorded at 2019-end.
Cooper Tire — which shares space with Goodyear Tire (GT - Free Report) , Bridgestone Corp (BRDCY - Free Report) and Michelin (MGDDY - Free Report) in the same industry — currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Cooper Tire & Rubber Company reported fourth-quarter 2020 adjusted earnings of 75 cents per share, which lagged the Zacks Consensus Estimate of 92 cents. The underperformance was attributed to weaker-than expected revenues and income from the American Tire Operations segment. The bottom line also declined from earnings per share of $1.02 recorded in the prior-year quarter. The company’s net sales slipped 3% year over year to $728.3 million for fourth-quarter 2020, mainly due to lower unit volumes. The reported figure also missed the Zacks Consensus Estimate of $748 million.
Key Takeaways
Net sales in Americas Tire Operations tailed off 3.9% year over year to $629 million on lower unit volume and unfavorable currency translations. The reported figure also missed the Zacks Consensus Estimate of $656 million. Operating profit in the segment declined 14% from the year-ago quarter to $72 million and fell short of the consensus mark of $77 million. Operating margin was 11.4% compared with the prior-year quarter’s 12.9%.
Revenues in International Tire Operations grew 14% from a year ago to $136 million due to higher unit volume and favorable forex impact. The unit registered operating profit of $3 million against operating loss of $6 million posted in the year-ago quarter. Operating margin was 2.4% versus negative 5% reported in the prior-year quarter.
Cooper Tire had cash and cash equivalents of $625.7 million as of Dec 31, 2020 compared with $391.3 million recorded in the comparable year-ago period. Capital expenditure for fourth-quarter 2020 increased to $55 million from the year-ago level of $47 million. As of Dec 31, 2020, long-term debt and finance leases amounted to $314.3 million, up from $309 million recorded at 2019-end.
Cooper Tire — which shares space with Goodyear Tire (GT - Free Report) , Bridgestone Corp (BRDCY - Free Report) and Michelin (MGDDY - Free Report) in the same industry — currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 77 billion devices by 2025, creating a $1.3 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 4 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2022.
Click here for the 4 trades >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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