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Goodyear (GT) Q1 Earnings and Sales Beat Estimates
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The Goodyear Tire & Rubber Company (GT - Free Report) is one of the world’s largest tire manufacturing companies, selling under Goodyear, Kelly, Dunlop, Fulda, Debica, Sava and various other brands. The company regularly launches innovative products and services to boost sales. Although Goodyear generates worldwide sales, North America is its leading market. It is also expanding in emerging markets to boost profits. Moreover, its capital allocation plan is expected to enhance shareholder value.
However, declining revenues and pricing pressure are concerns. Economic weakness in Latin America and Brazil are other challenges.
Estimate Trend & Surprise History
Investors should note that the first-quarter earnings estimate for Goodyear have been stable over the past month.
The company delivered positive earnings surprises in each of the last four quarter with an average beat of 6.12%. Investors have been eagerly awaiting Goodyear’s latest earnings report to see whether it delivers an earnings beat in the first quarter as well.
The Goodyear Tire & Rubber Company Price and EPS Surprise
We have highlighted some of the key stats from the company’s earnings announcement below:
Earnings
Goodyear reported adjusted earnings of 74 cents per share in the first quarter of 2017, surpassing the Zacks Consensus Estimate of 63 cents. Adjusted earnings were higher than 72 cents generated in the year-ago quarter.
Revenues
Goodyear logged revenues of $3.7 billion, narrowly passing the Zacks Consensus Estimate of $3.69 billion. Revenues were almost at par with the figure posted a year ago, mainly due to improvement in price and mix as well as higher pricing of third-party chemical sales partially offset by lower tire unit volume.
Key Stats/Developments to Note
During the reported quarter, Goodyear repurchased 0.7 million shares for $25 million under the previously announced $2.1 billion share repurchase program.
The company expects operating income in 2017 to be at par with the $2 billion recorded in 2016.
Market Reaction
Goodyear’s shares have decreased 1.3% in pre-market trading so far following the release. It would be interesting to see how the market reacts to the results during the trading session today.
Check back later for our full write up on Goodyear’s earnings report!
The Best & Worst of Zacks
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Goodyear (GT) Q1 Earnings and Sales Beat Estimates
The Goodyear Tire & Rubber Company (GT - Free Report) is one of the world’s largest tire manufacturing companies, selling under Goodyear, Kelly, Dunlop, Fulda, Debica, Sava and various other brands. The company regularly launches innovative products and services to boost sales. Although Goodyear generates worldwide sales, North America is its leading market. It is also expanding in emerging markets to boost profits. Moreover, its capital allocation plan is expected to enhance shareholder value.
However, declining revenues and pricing pressure are concerns. Economic weakness in Latin America and Brazil are other challenges.
Estimate Trend & Surprise History
Investors should note that the first-quarter earnings estimate for Goodyear have been stable over the past month.
The company delivered positive earnings surprises in each of the last four quarter with an average beat of 6.12%. Investors have been eagerly awaiting Goodyear’s latest earnings report to see whether it delivers an earnings beat in the first quarter as well.
The Goodyear Tire & Rubber Company Price and EPS Surprise
The Goodyear Tire & Rubber Company Price and EPS Surprise | The Goodyear Tire & Rubber Company Quote
Zacks Rank
Goodyear currently has a Zacks Rank #3 (Hold), but that could change following its earnings report which was just released. You can see the complete list of today’s Zacks #1 Rank stocks here.
We have highlighted some of the key stats from the company’s earnings announcement below:
Earnings
Goodyear reported adjusted earnings of 74 cents per share in the first quarter of 2017, surpassing the Zacks Consensus Estimate of 63 cents. Adjusted earnings were higher than 72 cents generated in the year-ago quarter.
Revenues
Goodyear logged revenues of $3.7 billion, narrowly passing the Zacks Consensus Estimate of $3.69 billion. Revenues were almost at par with the figure posted a year ago, mainly due to improvement in price and mix as well as higher pricing of third-party chemical sales partially offset by lower tire unit volume.
Key Stats/Developments to Note
During the reported quarter, Goodyear repurchased 0.7 million shares for $25 million under the previously announced $2.1 billion share repurchase program.
The company expects operating income in 2017 to be at par with the $2 billion recorded in 2016.
Market Reaction
Goodyear’s shares have decreased 1.3% in pre-market trading so far following the release. It would be interesting to see how the market reacts to the results during the trading session today.
Check back later for our full write up on Goodyear’s earnings report!
The Best & Worst of Zacks
Today you are invited to download the full, up-to-the-minute list of 220 Zacks Rank #1 "Strong Buys" free of charge. From 1988 through 2015 this list has averaged a stellar gain of +25% per year. Plus, you may download 220 Zacks Rank #5 "Strong Sells." Even though this list holds many stocks that seem to be solid, it has historically performed 6X worse than the market. See these critical buys and sells free >>