Cooper Tire & Rubber Company Third Quarter Earnings Sneak Peek

Cooper Tire & Rubber Company (NYSE:CTB) will unveil its latest earnings on Friday, November 2, 2012. 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.

Cooper Tire & Rubber Company Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average analyst estimate is for net income of 87 cents per share, a rise of more than threefold from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved up from 78 cents. Between one and three months ago, the average estimate moved up. It has been unchanged at 87 cents during the last month. Analysts are projecting profit to rise by 113.3% versus last year to $2.56.

Past Earnings Performance: Last quarter, the company reported profit of 82 cents per share versus a mean estimate of net income of. The company has beaten estimates for the past three quarters.

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A Look Back: In the second quarter, profit rose more than fourfold to $51.7 million (82 cents a share) from $11.5 million (18 cents a share) the year earlier, exceeding analyst expectations. Revenue rose 14.8% to $1.06 billion from $922.2 million.

Stock Price Performance: Between August 3, 2012 and October 29, 2012, the stock price rose $1.33 (7.6%), from $17.43 to $18.76. The stock price saw one of its best stretches over the last year between August 31, 2012 and September 14, 2012, when shares rose for 10 straight days, increasing 16.9% (+$3.38) over that span. It saw one of its worst periods between May 7, 2012 and May 15, 2012 when shares fell for seven straight days, dropping 8.3% (-$1.33) over that span.

Wall St. Revenue Expectations: Analysts predict a rise of 5.7% in revenue from the year-earlier quarter to $1.11 billion.

Key Stats:

This upcoming earnings announcement will be a chance to build on positive earnings momentum over the last three quarters. Net income rose more than fivefold in the fourth quarter of the last fiscal year and 37.6% in the first quarter before increasing again in the second quarter.

On the top line, the company is looking to build on four-straight revenue increases heading into this earnings announcement. Revenue rose 19.3% in the third quarter of the last fiscal year, 13.7% in the fourth quarter of the last fiscal year and 8.6% in the first quarter before increasing again in the second quarter.

Analyst Ratings: With four analysts rating the stock a buy, none rating it a sell and two rating the stock a hold, there are indications of a bullish stance by analysts.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.87 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, for every dollar the company owes in the short term, it has that figure available in assets that can be converted to cash in the short term. The company improved this liquidity measure from 1.82 in the first quarter to the last quarter driven in part by an increase in current assets. Current assets increased 5% to $1.44 billion while liabilities rose by 2.1% to $771 million.

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

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