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What Does Wall Street See for Goodyear Tire & Rubber's Q1?

By Seth Jayson – Updated Apr 10, 2017 at 1:46PM

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Checking expectations

Goodyear Tire & Rubber (Nasdaq: GT) is expected to report Q1 earnings on April 26. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Goodyear Tire & Rubber's revenues will wither -7.9% and EPS will shrink 0.0%.

The average estimate for revenue is $5.10 billion. On the bottom line, the average EPS estimate is $0.34.

Revenue details
Last quarter, Goodyear Tire & Rubber reported revenue of $5.05 billion. 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 details
Last quarter, non-GAAP EPS came in at $0.39. GAAP EPS were -$0.09 for Q4 versus $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.

Recent performance
For the preceding 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.

Looking ahead

The full year's average estimate for revenue is $20.86 billion. The average EPS estimate is $2.03.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 489 members out of 588 rating the stock outperform, and 99 members rating it underperform. Among 130 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 106 give Goodyear Tire & Rubber a green thumbs-up, and 24 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. 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.

Stocks Mentioned

Goodyear Tire & Rubber Stock Quote
Goodyear Tire & Rubber
$10.83 (-3.73%) $0.42

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

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