Cooper Tire & Rubber reversed its year-ago loss to turn in a third-quarter net profit of $30.2 million, or 48 cents per share. In the same quarter last year, CTB lost $25 million, or 41 cents per share. Earnings from continuing operations were $17 million, or 29 cents per share, falling just 1 penny short of the Street's forecast. The results were boosted by a lift in tire-unit sales overseas, as well as pricing improvements domestically.
Revenue for the period jumped 11% to $767.7 million, up from $689.9 million last year. North American tire sales rose 10% year-over-year, while international sales posted a 22% year-over-year increase.
Option traders were heavily pessimistic ahead of the report. CTB's Schaeffer's put/call open interest ratio of 1.93 reveals that puts nearly double calls among near-term options. Meanwhile, short interest increased by more than 14% during the most recent reporting period, and now accounts for nearly 9% of the stock's available float.
Unfortunately, it seems that the lukewarm quarterly results weren't enough to cheer these bears. The stock plunged about 15% lower right out of the gate this morning. On a technical basis, CTB is looking up at its formerly supportive 10-month moving average, as well as a bearish cross of its 10-week and 20-week trendlines.