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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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 position in any of the stocks mentioned. 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.