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Cooper Tire (CTB) Q1 Earnings & Revenues Surpass Estimates

Zacks Equity Research

Cooper Tire & Rubber Company CTB has posted adjusted earnings of 22 cents per share in the first quarter of 2019, beating the Zacks Consensus Estimate of 20 cents.

The company’s net sales increased 2.9% year over year to $619 million, surpassing the Zacks Consensus Estimate of $608 million. Gross profit was $88.3 million, marking rise from $84.5 million recorded in the prior-year quarter.

Reportedly, operating profit was $26.4 million, almost in line with first-quarter 2018.

Cooper Tire & Rubber Company Price, Consensus and EPS Surprise

Cooper Tire & Rubber Company Price, Consensus and EPS Surprise | Cooper Tire & Rubber Company Quote

Segment Details

Americas Tire Operations registered a 6.1% increase in net sales to $515 million. Operating profit in this segment rose 24.2% to $39 million while operating margin was 7.5% compared with6.4% in the prior-year period.

International Tire Operations registered a 10.8% decline in revenues to $144 million. Operating loss was $1 million against operating income of $7 million in the year-ago quarter. Operating margin was a negative 0.9% against a positive 4.6% in the year-ago quarter.

Financial Position

At the end of the first quarter, Cooper Tire had cash and cash equivalents of $212 compared with $213 million in the year-ago quarter. Capital expenditure decreased to $60 million during the quarter, which was similar to first-quarter 2018.

Outlook

For 2019, the company reiterated the anticipation of modest growth in unit volume compared with the actual figure in 2018. It expects operating margin to improve in 2019.

Zacks Rank & Stocks to Consider

Cooper Tire currently carries a Zacks Rank #3 (Hold). A few better-ranked stocks in the auto space are PACCAR, Inc. PCAR, SPX Corp. SPXC and AB Volvo VLVLY. PACCAR and SPX Corp. currently carry a Zacks Rank #2 (Buy) while Volvo sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

PACCAR has an expected long-term growth rate of 8.4%. The company’s stock has seen the Zacks Consensus Estimate for earnings in 2019 being revised 0.16% upward over the past 30 days.

SPX Corp. has an expected current-year growth rate of 18.2%. The company’s stock has seen the Zacks Consensus Estimate for earnings in 2019 being revised 0.39% upward over the past 30 days.

Volvo has an expected long-term growth rate of 5%. The company’s stock has seen the Zacks Consensus Estimate for earnings in 2019 being revised 8.1% upward over the past 30 days.

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