For Immediate Release
Chicago, IL – October 20, 2016 – Zacks Equity Research highlights definitely Cooper Tire & Rubber (NYSE: CTB – Free Report ) as the Bull of the Day and Monsanto Company (NYSE: MON – Free Report ) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on eBay Inc. (NASDAQ: EBAY – Free Report ).
Here is a synopsis of all three stocks:
Headquartered in Findlay, OH, Cooper Tire & Rubber (NYSE: CTB – Free Report ) manufactures and markets passenger cars and light truck tires and related products. They have over 9,100 employees and 52 manufacturing, distribution, retail stores, technical centers and office facilities located in more than one dozen countries around the world.
Their operations are divided into four business segments- North America, Latin America, Europe and Asia. Based on sales volume, they are the twelfth largest tire manufacturer in the world and the fifth largest in the US.
Solid Quarterly Results
The company reported earnings of $ 1.27 per share for Q2, significantly ahead of the Zacks Consensus Estimate of $ 1.07. Earnings were also much higher than $ 1.03 per share reported in the year-ago quarter.
Revenues however fell slightly short of the Zacks Consensus Estimate due to the adverse impact of price and mix, and currency headwinds.
The balance sheet remained strong with more than $ 400 million in cash and cash equivalents as of June 30, 2016 and low leverage .
Returning Cash to Shareholders
On August 3, the company announced its 178th consecutive quarterly dividend. They have also been returning cash to shareholders via buybacks. They completed $ 372 million in share repurchases from August 2014 through August 3, 2016 (17% of outstanding) and an additional $ 152 million of repurchase authorization remains through December 31, 2017.
Rising Estimates
Analysts have been raising their estimates for the company in the past few weeks. Zacks Consensus Estimates for the current and next year are now $ 4.29 per share and $ 3.95 per share, up from $ 4.08 and $ 3.81 respectively, before Q2 results.
Headquartered in St. Louis, Missouri, Monsanto Company (NYSE: MON – Free Report ) is a leading global provider of agricultural products. It has two operating segments– Seeds and Genomics, and Agricultural Productivity.
The Seeds and Genomics segment produces corn, soybeans, canola and cotton seeds, as well as vegetable and fruit seeds. This segment also develops biotechnology traits to control insects and weeds.
The Agricultural Productivity segment consists of other glyphosate-based herbicides for agricultural, industrial, ornamental and turf applications and lawn-and-garden herbicides.
Results Better-than-Expected but Guidance Disappoints
The company reported better-than-expected results for its fiscal Q4 ended Aug 31, 2016.
Adjusted earnings came in at $ 0.07 per share beating the Zacks Consensus Estimate of a loss of $ 0.02 and much better than the year-ago loss of $ 0.19 per share.
For fiscal 2017, the management expects earnings to be between $ 3.83 to $ 4.35 per share, which was lower than street estimates.
Falling Estimates
Analysts have slashed their estimates for the company in view of the negative outlook. Zacks Consensus Estimates for the current and the next fiscal year are $ 4.72 per share and $ 5.26 per share respectively, down from $ 4.90 and $ 5.68, 30 days ago. Declining estimates sent the stock to a Zacks Rank #5 (Strong Sell).
Additional content:
eBay Reports Earnings Beat, Slumps on Weak Holiday Guidance
eBay Inc. (NASDAQ: EBAY – Free Report ) just released its third quarter fiscal 2016 financial results, posting earnings of 45 cents per diluted share and revenue of $ 2.22 billion. EBAY is a Zacks Rank #3 (Hold), and is down 6.5% to $ 30.40 per share in after-hours trading shortly after its earnings report was released.
Beat earnings estimates . The company posted earnings of 45 cents per diluted share, surpassing average analyst expectations of 44 cents per share.
Beat revenue estimates . The company saw revenue figures of $ 2.22 billion, beating our consensus estimate of $ 2.182 billion and gaining 5.6% year-over-year.
eBay reported gross merchandise volume of $ 20.1 billion, increasing 5% on a foreign exchange (FX) neutral basis and 3% on an as-reported basis.
During the quarter, the company generated $ 802 million of operating cash flow and $ 617 million of free cash flow from continuing operations while also repurchasing $ 500 million of its common stock.
For the upcoming holiday quarter, eBay forecast revenue of $ 2.36 billion to $ 2.41 billion and adjusted profit from continuing operations of 52 to 54 cents per share for the current quarter. Analysts on average were expecting revenue of $ 2.40 billion and earnings of 54 cents per share.
“In Q3 we delivered good top- and bottom-line financial results, led by consistent performance across our business,” said Devin Wenig, President and CEO of eBay Inc. “We continued to transform the shopping experience on eBay, delivered more personalization capabilities and began to activate our updated brand messaging.”
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COOPER TIRE (CTB): Free Stock Analysis Report
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