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Goodyear Tire (GT - Free Report) reported fourth-quarter 2021 adjusted earnings per share of 57 cents, surpassing the Zacks Consensus Estimate of 27 cents. The bottom line also increased 29.5% from the year-ago figure of 44 cents. High sales volumes across all segments, thanks to Cooper Tire buyout synergies, buoyed the results.
The company registered net revenues of $5,054 million, surging 38.2% on a year-over-year basis led by higher volume, favorable pricing, increased sales from other tire-related businesses and synergies from the Cooper Tire buyout. GT recorded the highest fourth-quarter revenues in 10 years, riding on robust selling prices. The top line also beat the Zacks Consensus Estimate of $4,869.1 million.
In the reported quarter, tire volume was 48.6 million units, up 29% from the year-ago period. Replacement tire shipments increased 39%, benefiting from the buyout of Cooper Tire. Original equipment unit volume fell 1% year over year, affected by lower vehicle production due to shortages of components and materials.
The Goodyear Tire & Rubber Company Price, Consensus and EPS Surprise
In the reported quarter, the Americas segment generated revenues of $3,041 million, 58% higher than the prior-year period’s figure. The segment registered an operating income of $308 million, rising 62.1%. Higher volume and favorable price/mix aided the upswing in operating margins.
Revenues in the Europe, Middle East and Africa segment were $1,385 million, rising 16.1% from the year-ago period. The segment’s operating profit came in at $41 million in the quarter, a decline of around 41% due to cost inflation of raw materials, wages, benefits, transportation and energy.
Revenues in the Asia Pacific segment increased 17% year over year to $628 million. The segment’s operating profit came in at $42 million, marginally down from $43 million owing to high raw material costs.
Financial Position
Goodyear had cash and cash equivalents of $1,088 million as of Dec 31, 2021, down from $1,539 million on Dec 31, 2020. As of the fourth quarter of 2021, long-term debt and finance leases amounted to $6,648 million, up from $5,432 million on Dec 31, 2020.
Tesla has an expected earnings growth rate of 35.21% for the current year. The Zacks Consensus Estimate for current-year earnings has been revised around 5% upward over the past 60 days.
Tesla’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters. TSLA pulled off a trailing four-quarter earnings surprise of 25.38%, on average. The stock has also rallied 5.4% over a year.
Dorman has an expected earnings growth rate of 15.8% for the current year. The Zacks Consensus Estimate for current-year earnings has been revised around 0.2% upward over the past 60 days.
Dorman’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and was on par with the consensus mark in one quarter. DORM pulled off a trailing four-quarter earnings surprise of 10.41%, on average. The stock has also rallied 52.8% over a year.
Genuine Parts has an expected earnings growth rate of 10.03% for the current year. The Zacks Consensus Estimate for earnings for the current year has been revised around 2.2% upward over the past 60 days.
Genuine Parts’ earnings beat the Zacks Consensus Estimate in all the trailing four quarters. GPC pulled off a trailing four-quarter earnings surprise of around 16%, on average. The stock has also rallied 27.6% over a year.
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Goodyear (GT) Tops Q4 Earnings Estimates, Reports Solid Sales
Goodyear Tire (GT - Free Report) reported fourth-quarter 2021 adjusted earnings per share of 57 cents, surpassing the Zacks Consensus Estimate of 27 cents. The bottom line also increased 29.5% from the year-ago figure of 44 cents. High sales volumes across all segments, thanks to Cooper Tire buyout synergies, buoyed the results.
The company registered net revenues of $5,054 million, surging 38.2% on a year-over-year basis led by higher volume, favorable pricing, increased sales from other tire-related businesses and synergies from the Cooper Tire buyout. GT recorded the highest fourth-quarter revenues in 10 years, riding on robust selling prices. The top line also beat the Zacks Consensus Estimate of $4,869.1 million.
In the reported quarter, tire volume was 48.6 million units, up 29% from the year-ago period. Replacement tire shipments increased 39%, benefiting from the buyout of Cooper Tire. Original equipment unit volume fell 1% year over year, affected by lower vehicle production due to shortages of components and materials.
The Goodyear Tire & Rubber Company Price, Consensus and EPS Surprise
The Goodyear Tire & Rubber Company price-consensus-eps-surprise-chart | The Goodyear Tire & Rubber Company Quote
Segmental Performance
In the reported quarter, the Americas segment generated revenues of $3,041 million, 58% higher than the prior-year period’s figure. The segment registered an operating income of $308 million, rising 62.1%. Higher volume and favorable price/mix aided the upswing in operating margins.
Revenues in the Europe, Middle East and Africa segment were $1,385 million, rising 16.1% from the year-ago period. The segment’s operating profit came in at $41 million in the quarter, a decline of around 41% due to cost inflation of raw materials, wages, benefits, transportation and energy.
Revenues in the Asia Pacific segment increased 17% year over year to $628 million. The segment’s operating profit came in at $42 million, marginally down from $43 million owing to high raw material costs.
Financial Position
Goodyear had cash and cash equivalents of $1,088 million as of Dec 31, 2021, down from $1,539 million on Dec 31, 2020. As of the fourth quarter of 2021, long-term debt and finance leases amounted to $6,648 million, up from $5,432 million on Dec 31, 2020.
Zacks Rank & Other Key Picks
Currently, Goodyear has a Zacks Rank #2 (Buy).
Some other top-ranked players in the auto space are Tesla (TSLA - Free Report) , sporting a Zacks Rank #1(Strong Buy) and Dorman Products (DORM - Free Report) and Genuine Parts (GPC - Free Report) , each carrying a Zacks Rank #2 currently. You can see the complete list of today’s Zacks #1 Rank stocks here.
Tesla has an expected earnings growth rate of 35.21% for the current year. The Zacks Consensus Estimate for current-year earnings has been revised around 5% upward over the past 60 days.
Tesla’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters. TSLA pulled off a trailing four-quarter earnings surprise of 25.38%, on average. The stock has also rallied 5.4% over a year.
Dorman has an expected earnings growth rate of 15.8% for the current year. The Zacks Consensus Estimate for current-year earnings has been revised around 0.2% upward over the past 60 days.
Dorman’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and was on par with the consensus mark in one quarter. DORM pulled off a trailing four-quarter earnings surprise of 10.41%, on average. The stock has also rallied 52.8% over a year.
Genuine Parts has an expected earnings growth rate of 10.03% for the current year. The Zacks Consensus Estimate for earnings for the current year has been revised around 2.2% upward over the past 60 days.
Genuine Parts’ earnings beat the Zacks Consensus Estimate in all the trailing four quarters. GPC pulled off a trailing four-quarter earnings surprise of around 16%, on average. The stock has also rallied 27.6% over a year.