Goodyear Tire & Rubber
The 10-second takeaway
For the quarter ended June 30 (Q2), Goodyear Tire & Rubber whiffed on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue contracted and GAAP earnings per share expanded significantly.
Margins increased across the board.
Goodyear Tire & Rubber notched revenue of $5.15 billion. The four analysts polled by S&P Capital IQ expected a top line of $5.74 billion on the same basis. GAAP reported sales were 8.4% lower than the prior-year quarter's $5.62 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 $0.57. The eight earnings estimates compiled by S&P Capital IQ predicted $0.46 per share. GAAP EPS of $0.33 for Q2 were 106% higher than the prior-year quarter's $0.16 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 19.6%, 50 basis points better than the prior-year quarter. Operating margin was 6.1%, 40 basis points better than the prior-year quarter. Net margin was 1.8%, 100 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $6.14 billion. On the bottom line, the average EPS estimate is $0.74.
Next year's average estimate for revenue is $22.85 billion. The average EPS estimate is $1.98.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 478 members out of 577 rating the stock outperform, and 99 members rating it underperform. Among 130 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 101 give Goodyear Tire & Rubber a green thumbs-up, and 29 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 $16.67.
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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. The Motley Fool has no positions in the stocks mentioned above. 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.