Goodyear Tire & Rubber
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Goodyear Tire & Rubber missed estimates on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped and GAAP earnings per share dropped to a loss.
Gross margins expanded, operating margins grew, net margins contracted.
Goodyear Tire & Rubber notched revenue of $5.05 billion. The four analysts polled by S&P Capital IQ predicted a top line of $5.34 billion on the same basis. GAAP reported sales were 11% lower than the prior-year quarter's $5.68 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 $0.39. The eight earnings estimates compiled by S&P Capital IQ anticipated $0.22 per share. GAAP EPS were -$0.09 for Q4 against $0.07 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 18.8%, 340 basis points better than the prior-year quarter. Operating margin was 4.8%, 210 basis points better than the prior-year quarter. Net margin was 0.1%, 30 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $5.12 billion. On the bottom line, the average EPS estimate is $0.37.
Next year's average estimate for revenue is $20.88 billion. The average EPS estimate is $2.17.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 472 members out of 571 rating the stock outperform, and 99 members rating it underperform. Among 151 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 125 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 $16.81.
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