Cooper Tire & Rubber Company First Quarter Earnings Sneak Peek

Cooper Tire & Rubber Company (NYSE:CTB) will unveil its latest earnings on Wednesday, May 2, 2012. Cooper Tire & Rubber produces and markets passenger, light truck, medium truck, motorsport, and motorcycle tires that are sold nationally and internationally in the replacement tire market.

Cooper Tire & Rubber Company Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for profit of 30 cents per share, a rise of 20% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from 34 cents. Between one and three months ago, the average estimate moved down. It has been unchanged at 30 cents during the last month. For the year, analysts are projecting net income of $2 per share, a rise of 66.7% from last year.

Past Earnings Performance: Last quarter, the company topped expectations by 12 cents, coming in at profit of 51 cents per share versus a mean estimate of net income of 39 cents per share. This followed two straight quarters of missing estimates.

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A Look Back: In the fourth quarter of the last fiscal year, profit rose more than fivefold to $209 million ($3.31 a share) from $40.2 million (64 cents a share) the year earlier, exceeding analyst expectations. Revenue rose 13.7% to $1.05 billion from $919.6 million.

Wall St. Revenue Expectations: On average, analysts predict $999 million in revenue this quarter, a rise of 10.3% from the year-ago quarter. Analysts are forecasting total revenue of $4.28 billion for the year, a rise of 8.9% from last year’s revenue of $3.93 billion.

Stock Price Performance: Between February 29, 2012 and April 26, 2012, the stock price had fallen $1.33 (-8%), from $16.60 to $15.27. The stock price saw one of its best stretches over the last year between March 6, 2012 and March 14, 2012, when shares rose for seven straight days, increasing 3.7% (+59 cents) over that span. It saw one of its worst periods between May 31, 2011 and June 13, 2011 when shares fell for 10 straight days, dropping 19.8% (-$4.78) over that span.

Key Stats:

The company enters this earnings announcement with substantial revenue momentum. The company has averaged year-over-year revenue growth of 16.9% over the last four quarters.

Last quarter’s earnings rise was a switch from preceding drops, so the upcoming earnings announcement is a chance to build on last quarter’s result. After net income declines in the second quarter of the last fiscal year and third quarter of the last fiscal year, profit rose in the fourth quarter of the last fiscal year.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.94 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, for every dollar the company owes in the short term, it has that figure available in assets that can be converted to cash in the short term.

Analyst Ratings: With four analysts rating the stock a buy, none rating it a sell and one rating the stock a hold, there are indications of a bullish stance by analysts.

(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

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