Cooper Tire & Rubber Co. (NYSE:CTB) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company.
Cooper Tire & Rubber Co. Earnings Cheat Sheet
Results: Adjusted Earnings Per Share increased 155.88% to $0.87 in the quarter versus EPS of $0.34 in the year-earlier quarter.
Revenue: Decreased 12.45% to $861.7 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: Cooper Tire & Rubber Co. reported adjusted EPS income of $0.87 per share. By that measure, the company beat the mean analyst estimate of $0.66. It missed the average revenue estimate of $965.03 million.
Quoting Management: ”We carried the momentum of record financial results from 2012 into the first quarter of 2013 by achieving record operating profit of $97 million despite a decline in volumes,” said Cooper Chairman, Chief Executive Officer and President Roy Armes. “We previously guided to lower volumes for the first quarter anticipating the deployment of a major phase of our ERP system and inventory adjustments being made by certain key customers. On top of these two expected impacts, which were specific to Cooper, the global tire market was extremely soft and world economies continued to be weak, which constrained consumer spending. Even with these combined factors negatively impacting volumes, we struck a balance between pricing discipline and volumes to achieve record results on the bottom line. That’s a testament to the strength of our brands and products in the marketplace. While a major phase of ERP deployment is largely behind us and key customer inventory adjustments are beginning to mitigate, we envision a second quarter that will remain challenging due to continued softness in global tire demand and weakness in the economy. Our long-term focus will remain on executing our strategic plan and continuing to deliver shareholder value across a wide range of conditions.”
Key Stats (on next page)…
Revenue decreased 18.9% from $1.06 billion in the previous quarter. EPS decreased 24.35% from $1.15 in the previous quarter.
Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $0.88 to a profit $0.91. For the current year, the average estimate has moved up from a profit of $3.14 to a profit of $3.42 over the last ninety days.
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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)