- Cooper Tire : Q3 revenue miss, operating margin warning
Cooper Tire & Rubber Co. reported a third-quarter profit beat and revenue miss and said it expects a lower-than-expected fourth-quarter operating margin. Earnings for the latest quarter rose to $61.7 million, or $1.18 per share, from $49.3 million, or 90 cents per share in the year-earlier period. The FactSet adjusted earnings-per-share consensus was 85 cents. Revenue rose to $733.8 million from $750.9 million, compared with the FactSet consensus of $788.0 million. The latest results reflect "continued challenges within the tire industry including raw material cost variability, weak trends in retail sell-out of tires to consumers, elevated inventory in the channels and a fluid promotional landscape," and exacerbated by recent U.S. hurricanes, said Cooper Tire Chief Executive Brad Hughes. Cooper Tire also said that it now expects a fourth-quarter operating margin below its previous mid-term target of 8% to 10%. Company shares have declined 2.2% over the last three months, compared with a 4.4% rise in the S&P 500.
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