Goodyear Tire & Rubber
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Goodyear Tire & Rubber missed estimates on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue increased and GAAP earnings per share expanded.
Gross margins shrank, operating margins dropped, and net margins grew.
Goodyear Tire & Rubber booked revenue of $5.68 billion. The four analysts polled by S&P Capital IQ foresaw a top line of $5.90 billion on the same basis. GAAP reported sales were 12% higher than the prior-year quarter's $5.07 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.24. The seven earnings estimates compiled by S&P Capital IQ averaged $0.24 per share on the same basis. GAAP EPS were $0.07 for Q4 versus -$0.73 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 15.3%, 220 basis points worse than the prior-year quarter. Operating margin was 2.5%, 70 basis points worse than the prior-year quarter. Net margin was 0.4%, 390 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $5.87 billion. On the bottom line, the average EPS estimate is $0.38.
Next year's average estimate for revenue is $24.53 billion.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 466 members out of 561 rating the stock outperform, and 95 members rating it underperform. Among 142 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 119 give Goodyear Tire & Rubber a green thumbs-up, and 23 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Goodyear Tire & Rubber is outperform, with an average price target of $18.56.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.