Yahoo Finance Cooper Tire (CTB) Posts Narrower-Than-Anticipated Q2 Loss
Cooper Tire & Rubber Company CTB reported second-quarter 2020 adjusted loss per share of 12 cents, narrower than the Zacks Consensus Estimate of a loss of 46 cents. Better-than expected contribution from the International Tire Operations segment led to narrower-than expected loss.
The bottom line deteriorated from earnings per share of 18 cents recorded in the prior-year quarter due to lower revenues across all segments amid coronavirus woes.
The company’s net sales declined 26.9% year over year to $496.3 million for second-quarter 2020, mainly due to lower unit volume and unfavorable foreign currency impact. The reported figure, however, topped the Zacks Consensus Estimate of $484 million.
Gross profit amounted to $65.6 million, down from $99 million recorded in the prior-year quarter. Additionally, operating profit plunged 83.2% from the prior-year quarter to $5.3 million.
Cooper Tire Rubber Company Price, Consensus and EPS Surprise
Cooper Tire Rubber Company price-consensus-eps-surprise-chart | Cooper Tire Rubber Company Quote
Key Takeaways
Net sales in Americas Tire Operations slid 26.9% year over year to $426 million on lower unit volume and unfavorable foreign currency impact. However, the reported figure topped the Zacks Consensus Estimate of $394 million. Operating profit in the segment tanked 53.4% from the year-ago quarter to $22 million. Operating margin was 5.1% compared with the prior-year quarter’s 8%.
Revenues in International Tire Operations declined 27.1% from a year ago to $101 million due to lower unit volume, unfavorable price mix and adverse foreign currency translation impact. The top line also missed the Zacks Consensus Estimate of $114 million. Operating loss was $1 million against operating income of $1 million posted in the year-ago quarter. However, the metric was narrower than the Zacks Consensus Estimate of a loss of $13.79 million. Operating margin was 1.4% compared with 0.9% reported in the prior-year quarter.
Cooper Tire had cash and cash equivalents of $541 million as of Jun 30, 2020 compared with $112 million recorded in the comparable year-ago period. Capital expenditure declined to $17 million from the year-ago level of $45 million.
As of Jun 30, 2020, long-term debt and finance leases amounted to $324.6 million, up from $120.6 million on Jun 30, 2019.
It expects improvement in the business during second-half 2020. Capex for the full year is estimated to be at the high end of the forecast range of $140-160 million.
Zacks Rank & Stocks to Consider
Cooper Tire currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the auto space include Garrett Motion Inc. GTX, Strattec Security Corporation STRT and Wabash National Corporation WNC, each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
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