Analysts: Cooper 3Q results surprise, but shares fall

Shares of Cooper Tire & Rubber Co. fell 1.9 per cent on 7 November following news that the company’s earnings in the third quarter of 2014 increased to 77 cents from breakeven earnings in the prior-year quarter. The latter figure is significant because it exceeded certain analysts’ estimates. For example the Zacks Consensus Estimate of 72 cents was some five cents below the actual results.

Sales revenues of US$920 million in the third quarter also significantly beat the Zacks Consensus Estimate of $907 million. The improvement came on the back of higher unit volume, partially offset by unfavorable price and mix. The fact that the numbers were more positive than expected and yet the share price fell would seem to suggest that other factors – most likely the recent news that Chinese partner Chengshan is to buy out the Cooper Chengshan Chinese tyre production joint venture – contributed to this.