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 shrank. Non-GAAP earnings per share increased significantly. GAAP earnings per share grew.
Margins grew across the board.
Goodyear Tire & Rubber notched revenue of $4.85 billion. The four analysts polled by S&P Capital IQ predicted revenue of $5.10 billion on the same basis. GAAP reported sales were 12% lower than the prior-year quarter's $5.53 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 $0.45. The nine earnings estimates compiled by S&P Capital IQ forecast $0.34 per share. Non-GAAP EPS of $0.45 for Q1 were 32% higher than the prior-year quarter's $0.34 per share. GAAP EPS were $0.10 for Q1 compared to -$0.05 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%, 200 basis points better than the prior-year quarter. Operating margin was 5.5%, 70 basis points better than the prior-year quarter. Net margin was 0.7%, 80 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $4.99 billion. On the bottom line, the average EPS estimate is $0.55.
Next year's average estimate for revenue is $20.86 billion. The average EPS estimate is $2.03.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 489 members out of 587 rating the stock outperform, and 98 members rating it underperform. Among 136 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 113 give Goodyear Tire & Rubber a green thumbs-up, and 23 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 $16.21.
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