Back to top

Image: Bigstock

Cooper Tire (CTB) Q2 Earnings Top Estimates, Revenues Lag

Read MoreHide Full Article

Cooper Tire & Rubber Co. manufactures and markets tires and related products. Based on sales volume, it is the twelfth largest tire company globally and the fifth largest tire manufacturer in North America.

Cooper Tire is benefiting from its high-performance products, share repurchases and improving business operations since the termination of the Apollo Tyres merger agreement. The company continues to develop great products with superior design and functionality. Cooper Tire has also been focusing on expansion in Asia and Latin America. However, the company operates in a very competitive industry.

Estimate Trend & Surprise History

The Zacks Consensus Estimate for Cooper Tire for the second quarter has fallen to $1.07 per share from $1.11 over the past week.

Moreover, Cooper Tire has a track record of delivering positive earnings surprises. It has beaten the Zacks Consensus Estimate in each of the trailing 4 quarters with an average beat of around 29.78%. Investors have been eagerly awaiting Cooper Tire’s latest earnings report to see whether it outperforms in this quarter.

COOPER TIRE Price and EPS Surprise

COOPER TIRE Price and EPS Surprise | COOPER TIRE Quote

Zacks Rank

Cooper Tire currently has a Zacks Rank #3 (Hold), but that could change following its earnings report which was just released. We have highlighted some of the key stats from this Ohio-based tire manufacturer’s earnings announcement below:

Earnings Top Estimates

Cooper Tire delivered earnings of $1.27 per share in the second quarter of 2016 that topped the Zacks Consensus Estimate of $1.07. Moreover, earnings were higher than $1.03 in the year-ago quarter.

Revenues Miss Estimates

Cooper Tire recorded revenues of $740 million, missing the Zacks Consensus Estimate of $755.52 million as well as lower than the year ago revenues of $752 million.

Key Stats/Developments to Note

Cooper Tire now expects operating margin, excluding the impact of acquisitions and non-cash pension settlement charges, to increase marginally from 11.9% recorded in 2015. The International Tire Operations segment is expected to improve significantly and generate profits this year. The company expects unit volumes to increase in both segments in the second half.

Cooper Tire expects raw material costs to increase marginally in the third quarter of 2016.

Market Reaction

Cooper Tire’s shares have remained inactive so far following the release. It would be interesting to see how the market reacts to the results during the trading session today.

Check back later for our full write up on Cooper Tire’s earnings report!

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>

Published in