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Goodyear (GT) Reliance on International Sales: What Investors Need to Know
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Have you evaluated the performance of Goodyear's (GT - Free Report) international operations during the quarter that concluded in June 2024? Considering the extensive worldwide presence of this tire maker, analyzing the patterns in international revenues is crucial for understanding its financial resilience and potential for growth.
In the modern, closely-knit global economic landscape, the capacity of a business to access foreign markets is often a key determinant of its financial well-being and growth path. Investors now place great importance on grasping the extent of a company's dependence on international markets, as it sheds light on the firm's earnings stability, its skill in leveraging various economic cycles and its broad growth potential.
Participation in global economies acts as a defense against economic difficulties at home and a pathway to more rapidly developing economies. However, it also comes with the complexities of dealing with fluctuating currencies, geopolitical risks and different market dynamics.
While analyzing GT's performance for the last quarter, we found some intriguing trends in revenues from its overseas segments that Wall Street analysts commonly model and monitor.
The company's total revenue for the quarter stood at $4.57 billion, declining 6.1% year over year. Now, let's delve into GT's international revenue breakdown to gain insights into the significance of its operations beyond home turf.
Decoding GT's International Revenue Trends
Europe, Middle East and Africa accounted for 28.0% of the company's total revenue during the quarter, translating to $1.28 billion. Revenues from this region represented a surprise of -1.32%, with Wall Street analysts collectively expecting $1.3 billion. When compared to the preceding quarter and the same quarter in the previous year, Europe, Middle East and Africa contributed $1.35 billion (29.7%) and $1.34 billion (27.6%) to the total revenue, respectively.
During the quarter, Asia Pacific contributed $594 million in revenue, making up 13.0% of the total revenue. When compared to the consensus estimate of $604.36 million, this meant a surprise of -1.71%. Looking back, Asia Pacific contributed $602 million, or 13.3%, in the previous quarter, and $587 million, or 12.1%, in the same quarter of the previous year.
Revenue Forecasts for the International Markets
Wall Street analysts expect Goodyear to report a total revenue of $5.15 billion in the current fiscal quarter, which suggests an increase of 0.1% from the prior-year quarter. Revenue shares from Europe, Middle East and Africa and Asia Pacific are predicted to be 26.7% and 13%, corresponding to amounts of $1.38 billion and $667.76 million, respectively.
For the full year, a total revenue of $19.68 billion is expected for the company, reflecting a decline of 1.9% from the year before. The revenues from Europe, Middle East and Africa and Asia Pacific are expected to make up 27.5% and 12.9% of this total, corresponding to $5.42 billion and $2.54 billion respectively.
Final Thoughts
Relying on global markets for revenues presents both prospects and challenges for Goodyear. Therefore, scrutinizing its international revenue trends is key to effectively forecasting the company's future outlook.
In a world where international interdependencies and geopolitical conflicts are ever-increasing, Wall Street analysts closely monitor these trends for companies having international presence to adjust their earnings forecasts. Of course, there are several other factors, including a company's standing within its home borders, that influence analysts' earnings forecasts.
Emphasizing a company's shifting earnings prospects is a key aspect of our approach at Zacks, especially since research has proven its substantial influence on a stock's price in the short run. This correlation is positively aligned, meaning that improved earnings projections tend to boost the stock's price.
The Zacks Rank, our proprietary stock rating mechanism, demonstrates a notable performance history confirmed through external audits. It effectively utilizes the power of earnings estimate revisions to act as a predictor of a stock's price performance in the near term.
The stock has declined by 14.8% over the past month compared to the 2.9% fall of the Zacks S&P 500 composite. Meanwhile, the Zacks Auto-Tires-Trucks sector, which includes Goodyear, has decreased 10.7% during this time frame. Over the past three months, the company's shares have experienced a loss of 28.6% relative to the S&P 500's 5.9% increase. Throughout this period, the sector overall has witnessed a 4.7% decrease.
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Goodyear (GT) Reliance on International Sales: What Investors Need to Know
Have you evaluated the performance of Goodyear's (GT - Free Report) international operations during the quarter that concluded in June 2024? Considering the extensive worldwide presence of this tire maker, analyzing the patterns in international revenues is crucial for understanding its financial resilience and potential for growth.
In the modern, closely-knit global economic landscape, the capacity of a business to access foreign markets is often a key determinant of its financial well-being and growth path. Investors now place great importance on grasping the extent of a company's dependence on international markets, as it sheds light on the firm's earnings stability, its skill in leveraging various economic cycles and its broad growth potential.
Participation in global economies acts as a defense against economic difficulties at home and a pathway to more rapidly developing economies. However, it also comes with the complexities of dealing with fluctuating currencies, geopolitical risks and different market dynamics.
While analyzing GT's performance for the last quarter, we found some intriguing trends in revenues from its overseas segments that Wall Street analysts commonly model and monitor.
The company's total revenue for the quarter stood at $4.57 billion, declining 6.1% year over year. Now, let's delve into GT's international revenue breakdown to gain insights into the significance of its operations beyond home turf.
Decoding GT's International Revenue Trends
Europe, Middle East and Africa accounted for 28.0% of the company's total revenue during the quarter, translating to $1.28 billion. Revenues from this region represented a surprise of -1.32%, with Wall Street analysts collectively expecting $1.3 billion. When compared to the preceding quarter and the same quarter in the previous year, Europe, Middle East and Africa contributed $1.35 billion (29.7%) and $1.34 billion (27.6%) to the total revenue, respectively.
During the quarter, Asia Pacific contributed $594 million in revenue, making up 13.0% of the total revenue. When compared to the consensus estimate of $604.36 million, this meant a surprise of -1.71%. Looking back, Asia Pacific contributed $602 million, or 13.3%, in the previous quarter, and $587 million, or 12.1%, in the same quarter of the previous year.
Revenue Forecasts for the International Markets
Wall Street analysts expect Goodyear to report a total revenue of $5.15 billion in the current fiscal quarter, which suggests an increase of 0.1% from the prior-year quarter. Revenue shares from Europe, Middle East and Africa and Asia Pacific are predicted to be 26.7% and 13%, corresponding to amounts of $1.38 billion and $667.76 million, respectively.For the full year, a total revenue of $19.68 billion is expected for the company, reflecting a decline of 1.9% from the year before. The revenues from Europe, Middle East and Africa and Asia Pacific are expected to make up 27.5% and 12.9% of this total, corresponding to $5.42 billion and $2.54 billion respectively.
Final Thoughts
Relying on global markets for revenues presents both prospects and challenges for Goodyear. Therefore, scrutinizing its international revenue trends is key to effectively forecasting the company's future outlook.In a world where international interdependencies and geopolitical conflicts are ever-increasing, Wall Street analysts closely monitor these trends for companies having international presence to adjust their earnings forecasts. Of course, there are several other factors, including a company's standing within its home borders, that influence analysts' earnings forecasts.
Emphasizing a company's shifting earnings prospects is a key aspect of our approach at Zacks, especially since research has proven its substantial influence on a stock's price in the short run. This correlation is positively aligned, meaning that improved earnings projections tend to boost the stock's price.
The Zacks Rank, our proprietary stock rating mechanism, demonstrates a notable performance history confirmed through external audits. It effectively utilizes the power of earnings estimate revisions to act as a predictor of a stock's price performance in the near term.
Goodyear currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Goodyear's Recent Stock Market Performance
The stock has declined by 14.8% over the past month compared to the 2.9% fall of the Zacks S&P 500 composite. Meanwhile, the Zacks Auto-Tires-Trucks sector, which includes Goodyear, has decreased 10.7% during this time frame. Over the past three months, the company's shares have experienced a loss of 28.6% relative to the S&P 500's 5.9% increase. Throughout this period, the sector overall has witnessed a 4.7% decrease.