Goodyear Tire & Rubber
The 10-second takeaway
For the quarter ended March 31 (Q1), Goodyear Tire & Rubber missed estimates on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue improved slightly and GAAP earnings per share contracted to a loss.
Margins contracted across the board.
Goodyear Tire & Rubber reported revenue of $5.53 billion. The four analysts polled by S&P Capital IQ foresaw sales of $5.83 billion on the same basis. GAAP reported sales were 2.4% higher than the prior-year quarter's $5.40 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.43. The seven earnings estimates compiled by S&P Capital IQ forecast $0.09 per share. GAAP EPS were -$0.05 for Q1 compared to $0.42 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 16.7%, 90 basis points worse than the prior-year quarter. Operating margin was 4.8%, 40 basis points worse than the prior-year quarter. Net margin was -0.1%, 200 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $5.76 billion. On the bottom line, the average EPS estimate is $0.48.
Next year's average estimate for revenue is $23.61 billion. The average EPS estimate is $1.81.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 471 members out of 570 rating the stock outperform, and 99 members rating it underperform. Among 135 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 109 give Goodyear Tire & Rubber a green thumbs-up, and 26 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 $16.78.
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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.