Cooper Tire & Rubber Earnings: Everything You Must Know Now

Cooper Tire & Rubber Co. (NYSE:CTB) delivered a profit and missed Wall Street’s expectations, AND 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 decreased 26.67% to $0.55 in the quarter versus EPS of $0.75 in the year-earlier quarter.

Revenue: Decreased 16.47% to $884.1 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Cooper Tire & Rubber Co. reported adjusted EPS income of $0.55 per share. By that measure, the company missed the mean analyst estimate of $0.93. It missed the average revenue estimate of $973.33 million.

Quoting Management: “Clearly, the big news in the second quarter was the pending merger with Apollo, a transaction that, subject to customary closing conditions, will create a combined company with approximately $6.6 billion in total sales and a strong presence in high-growth end-markets across four continents,” said Cooper Chairman, Chief Executive Officer and President Roy Armes. “We are excited about the long-term growth opportunities the pending merger will create and expect it to close before the end of this year. With regard to Cooper’s second quarter results, the period was one of challenge for the economy, the tire industry, and Cooper as we continued to navigate through a tough business environment. We are pleased with the initial reaction to the pricing changes we made toward the end of the quarter, but more remains to be seen as we enter the third quarter. While the second quarter was challenging, we are pleased to have ended the first half of 2013 with operating profit that is $4 million higher than the same time last year, excluding one-time items. Cooper has once again demonstrated an ability to deliver bottom line results across varied industry conditions.”

Key Stats (on next page)…

Revenue increased 2.6% from $861.68 million in the previous quarter. EPS decreased 36.78% from $0.87 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.99 to a profit $0.92. For the current year, the average estimate has moved up from a profit of $3.44 to a profit of $3.49 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)