Cooper Tire & Rubber Shares Popped: What You Need to Know
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of tire maker Cooper Tire & Rubber (NYS: CTB) rose 14% today after the company released earnings that topped expectations.
So what: Fourth-quarter sales rose to $1.05 billion, driven by 16% growth in North American tire sales. Analysts had expected $1.02 billion in sales. Adjusted earnings per share was $0.51, easily topping estimates of $0.39 per share from analysts.
Now what: According to management the ultra-high performance, light truck, and SUV markets drove stronger results in North America. Internationally, higher prices helped make up for lower demand. I'm a little worried about the lower volumes, but the company's forward P/E ratio of 10, and 2.7% dividend yield, is still attractive right now.
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At the time this article was published Fool contributor Travis Hoium does not have a position in any company mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings or follow his CAPS picks at TMFFlushDraw.Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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