Cooper Tire & Rubber Co. Earnings: Rising Revenue Helps Margins Expand, Profit Rises

Cooper Tire & Rubber Co. (NYSE:CTB) reported net income above Wall Street’s expectations for the first quarter. 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.

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Cooper Tire & Rubber Earnings Cheat Sheet for the First Quarter

Results: Net income for Cooper Tire & Rubber Co. rose to $21.6 million (34 cents per share) vs. $15.7 million (25 cents per share) in the same quarter a year earlier. This marks a rise of 37.6% from the year-earlier quarter.

Revenue: Rose 9.1% to $984.3 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Cooper Tire & Rubber Co. beat the mean analyst estimate of 30 cents per share. Analysts were expecting revenue of $999 million.

Quoting Management: Roy Armes, Chief Executive Officer, commented, “During the first quarter we continued progress toward our goals in the midst of a challenging business environment. We have now achieved 11 consecutive quarters of profitability, which is a tribute to the resiliency of our business model. “While demand has been sluggish for the industry, our new products continue to do well as we exceeded industry growth in many product lines. We continue to believe that pent-up demand for broadline tires exists, although it is difficult to predict exactly when that demand will manifest.”

Key Stats:

The company has now beaten estimates the last two quarters. In the fourth quarter of the last fiscal year, it topped expectations with net income of 51 cents versus a mean estimate of net income of 39 cents per share.

Net income has increased 71.6% year-over-year on average across the last five quarters. The biggest gain came in the fourth of the last fiscal year, when income climbed more than fivefold from the year-earlier quarter.

Looking Forward: Analysts appear increasingly optimistic about the company’s results for the next quarter. The average estimate for the second quarter has moved up from 30 cents a share to 42 cents over the last ninety days. For the fiscal year, the average estimate has moved up from $1.80 a share to $2 over the last sixty days.

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

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