NEW YORK (TheStreet) -- Cooper Tire & Rubber (CTB) shares are down 6.66% to $35.20 in trading on Monday following the release of the tire company's fourth quarter earnings results before the opening bell today.
The company reported fourth quarter earnings of $82.3 million, or an adjusted profit of 45 cents per diluted share on revenue of $819.6 million. Analysts on average were expecting the company to report earnings of 62 cents per share on revenue of $805.5 million.
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For the year the company reported a profit of $213.6 million, which translates to an EPS of $3.42 per share on an adjusted basis, on revenue of $3.42 billion.
The company is forecasting stronger 2015 results despite today's disappointing report. "Overall, while we expect that global tire markets will remain highly competitive in 2015, we expect to exceed industry unit volume growth rates in our largest markets for the full year. House brands will be a key contributor to this growth," said the company.
Separately, Cooper Tire announced that its directors authorized a $200 million share buyback program scheduled to run through December 31, 2016.
TheStreet Ratings team rates COOPER TIRE & RUBBER CO as a Buy with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation:
"We rate COOPER TIRE & RUBBER CO (CTB) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, increase in net income, attractive valuation levels and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company shows weak operating cash flow."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- You can view the full analysis from the report here: CTB Ratings Report