Back to top

Image: Bigstock

Unlocking Goodyear (GT) International Revenues: Trends, Surprises, and Prospects

Read MoreHide Full Article

Did you analyze how Goodyear (GT - Free Report) fared in its international operations for the quarter ending December 2024? Given the widespread global presence of this tire maker, scrutinizing the trends in international revenues becomes imperative to assess its financial strength and future growth possibilities.

In today's increasingly interconnected global economy, a company's ability to tap into international markets can be a pivotal factor in shaping its overall financial health and growth trajectory. For investors, understanding a company's reliance on overseas markets has become increasingly crucial, as it offers insights into the company's sustainability of earnings, ability to tap into diverse economic cycles and overall growth potential.

Being present in international markets serves as a counterbalance to domestic economic challenges while offering chances to engage with more rapidly evolving economies. However, this kind of diversification introduces challenges like currency fluctuations, geopolitical uncertainties and varying market trends.

Our review of GT's last quarterly performance uncovered some notable trends in the revenue contributions from its international markets, which are commonly analyzed and tracked by Wall Street experts.

For the quarter, the company's total revenue amounted to $4.95 billion, experiencing a decline of 3.3% year over year. Next, we'll explore the breakdown of GT's international revenue to understand the importance of its overseas business operations.

Exploring GT's International Revenue Patterns

Of the total revenue, $1.45 billion came from Europe, Middle East and Africa during the last fiscal quarter, accounting for 29.33%. This represented a surprise of +10.32% as analysts had expected the region to contribute $1.32 billion to the total revenue. In comparison, the region contributed $1.35 billion, or 27.94%, and $1.4 billion, or 27.35%, to total revenue in the previous and year-ago quarters, respectively.

Asia Pacific generated $606 million in revenues for the company in the last quarter, constituting 12.25% of the total. This represented a surprise of -4.22% compared to the $632.71 million projected by Wall Street analysts. Comparatively, in the previous quarter, Asia Pacific accounted for $618 million (12.81%), and in the year-ago quarter, it contributed $650 million (12.71%) to the total revenue.

Revenue Forecasts for the International Markets

Wall Street analysts expect Goodyear to report a total revenue of $4.46 billion in the current fiscal quarter, which suggests a decline of 1.7% from the prior-year quarter. Revenue shares from Europe, Middle East and Africa and Asia Pacific are predicted to be 30.3% and 12.7%, corresponding to amounts of $1.35 billion and $565.87 million, respectively.

For the full year, a total revenue of $18.71 billion is expected for the company, reflecting a decline of 0.9% from the year before. The revenues from Europe, Middle East and Africa and Asia Pacific are expected to make up 28.4% and 12.5% of this total, corresponding to $5.32 billion and $2.34 billion respectively.

Final Thoughts

Goodyear's reliance on international markets for revenues offers both opportunities and risks. Hence, keeping an eye on its international revenue trends could significantly help forecast the company's prospects.

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.

We at Zacks strongly focus on the dynamic earnings forecast of companies, given that empirical studies have demonstrated its potent impact on the immediate price movement of stocks. Invariably, there's a positive relationship -- upward earnings predictions often result in an increase in stock prices.

The Zacks Rank, our proprietary stock rating tool, comes with an externally validated impressive track record. It effectively utilizes shifts in earnings projections to act as a dependable barometer for forecasting short-term stock price trends.

Goodyear, bearing a Zacks Rank #3 (Hold), is expected to mirror the broader market's movements in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Examining the Latest Trends in Goodyear's Stock Value

Over the preceding four weeks, the stock's value has appreciated by 2.1%, against an upturn of 4.7% in the Zacks S&P 500 composite. In parallel, the Zacks Auto-Tires-Trucks sector, which counts Goodyear among its entities, has depreciated by 4.7%. Over the past three months, the company's shares have seen a decline of 1.3% versus the S&P 500's 3.1% increase. The sector overall has witnessed an increase of 7.3% over the same period.

See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


The Goodyear Tire & Rubber Company (GT) - free report >>

Published in