Cooper Tire & Rubber Co.CTB 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
Investors should note that the fourth-quarter earnings estimate for Cooper Tire have been stable over the past month.
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 17.28%. Investors have been eagerly awaiting Cooper Tire's latest earnings report to see whether it outperforms in this quarter.
Cooper Tire currently has a Zacks Rank #5 (Strong Sell), 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:
Cooper Tire delivered earnings of $1.28 per share in the fourth quarter of 2016 that topped the Zacks Consensus Estimate of 93 cents. Moreover, earnings were higher than $1.04 in the year-ago quarter.
Cooper Tire & Rubber Company Price and EPS Surprise
Cooper Tire recorded revenues of $784 million, surpassing the Zacks Consensus Estimate of $767 million as well the year ago revenues of $775.5 million.
Key Stats/Developments to Note
Cooper Tire expects operating margin to be at the high end of the previously announced mid-term target of 8 to 10%. The International Tire Operations segment is expected to improve operating profit this year.
Cooper Tire expects raw material costs to increase 25% year over year in the first half of 2017. The company expects global unit volumes from each of its segments to increase in 2017.
The Board of Directors of Cooper Tire has increased share repurchase authorization by $300 million. During 2016, the company repurchased shares worth $108 million.
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!
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