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Cooper Tire (CTB) Q1 Earnings Miss, Sales Top Estimates, Up Y/Y

·3 min read

Cooper Tire & Rubber Company CTB reported first-quarter 2021 adjusted earnings of 43 cents per share, which lagged the Zacks Consensus Estimate of 71 cents. This underperformance resulted from higher selling, general & distribution (SG&A) expenses incurred during the quarter. Notably, SG&A expenses rose to $71.2 million from the prior-year’s quarter of $51.2 million.

Nonetheless, the bottom line compares favorably with the loss per share of 6 cents recorded in the prior-year quarter. The company’s net sales jumped 23.3% year over year to $656 million for first-quarter 2021, mainly on higher unit volumes, favorable price/mix and favorable foreign currency impact. The reported figure also surpassed the Zacks Consensus Estimate of $633 million.

Key Takeaways

Net sales in Americas Tire Operations climbed 23% year over year to $562 million on higher unit volume and favorable currency translations. The reported figure, moreover, beat the Zacks Consensus Estimate of $509 million. Operating profit in the segment skyrocketed 473.8% from the year-ago quarter to $60 million and also topped of the consensus mark of $54 million. Operating margin was 10.7% compared with the prior-year quarter’s 2.3%.

Revenues in International Tire Operations grew 36.1% from the prior year to $139 million due to higher unit volume and favorable forex impact. The reported figure also outpaced the Zacks Consensus Estimate of $101 million. The unit registered operating profit of $3 million as against operating loss of $10 million posted in the year-ago quarter as well as beat the consensus mark of $1.4 million. Operating margin was 2.3% versus the negative 10% reported in the prior-year quarter.

Cooper Tire had cash and cash equivalents of $460.4 million as of Mar 31, 2021, compared with the $433.4 million recorded in the year-ago period. Capital expenditure for first-quarter 2021 increased to $57 million from the year-ago level of $55 million. As of Mar 31, 2021, long-term debt and finance leases amounted to $309.2 million, up from the $301.9 million recorded as on Mar 31, 2021.

Cooper Tire — which shares space with Goodyear Tire GT , Bridgestone Corp BRDCY and Michelin MGDDY in the same industry — currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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The Goodyear Tire & Rubber Company (GT) : Free Stock Analysis Report
 
Cooper Tire & Rubber Company (CTB) : Free Stock Analysis Report
 
Bridgestone Corp. (BRDCY) : Free Stock Analysis Report
 
Michelin (MGDDY) : Free Stock Analysis Report
 
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