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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.
Goodyear is benefitting from lower raw material costs, strong economic trends in North America and continued cost savings, partially offset by a challenging international environment and unfavorable foreign currency translation due to the continuing strength of the U.S. dollar. Goodyear’s revenue has been declining over the years. The company has also been facing challenges in terms of a volatile political and economic environment and high currency fluctuations.
Estimate Trend & Surprise History
Investors should note that the second-quarter earnings estimate for Goodyear has increased by a penny to $1.04 over the past 30 days.
The company delivered positive earnings surprises in each of the last four quarter with an average beat of 10.77%. Investors have been eagerly awaiting Goodyear’s latest earnings report to see whether it delivers an earnings beat in the second quarter as well.
Zacks Rank
Goodyear currently has a Zacks Rank #2 (Buy), but that could change following its earnings report which was just released. We have highlighted some of the key stats from the company’s earnings announcement below:
Earnings
Goodyear reported adjusted earnings of $1.16 per share in the second quarter of 2016, surpassing the Zacks Consensus Estimate of $1.04. Adjusted earnings were higher than 84 cents generated in the year-ago quarter.
Goodyear logged revenues of $3.87 billion, in line with the Zacks Consensus Estimate of $3.87 billion. However, revenues were lower than $4.17 billion posted a year ago, mainly due to unfavorable foreign currency translation and deconsolidation of the subsidiary in Venezuela.
Key Stats/Developments to Note
Goodyear reaffirmed its previous guidance. The company expects annual segment operating income to increase 10–15% in 2016. The company also aims to generate positive free cash flow (excluding pension pre-funding) over this period.
During the reported quarter, Goodyear repurchased 3.6 million shares for $100 million under the previously announced $1.1 billion share repurchase program.
Market Reaction
Goodyear’s share price has increased 2.51% so far in pre-market trading 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!
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Goodyear (GT) Q2 Earnings Beat Estimates, Rise Y/Y
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.
Goodyear is benefitting from lower raw material costs, strong economic trends in North America and continued cost savings, partially offset by a challenging international environment and unfavorable foreign currency translation due to the continuing strength of the U.S. dollar. Goodyear’s revenue has been declining over the years. The company has also been facing challenges in terms of a volatile political and economic environment and high currency fluctuations.
Estimate Trend & Surprise History
Investors should note that the second-quarter earnings estimate for Goodyear has increased by a penny to $1.04 over the past 30 days.
The company delivered positive earnings surprises in each of the last four quarter with an average beat of 10.77%. Investors have been eagerly awaiting Goodyear’s latest earnings report to see whether it delivers an earnings beat in the second quarter as well.
Zacks Rank
Goodyear currently has a Zacks Rank #2 (Buy), but that could change following its earnings report which was just released. We have highlighted some of the key stats from the company’s earnings announcement below:
Earnings
Goodyear reported adjusted earnings of $1.16 per share in the second quarter of 2016, surpassing the Zacks Consensus Estimate of $1.04. Adjusted earnings were higher than 84 cents generated in the year-ago quarter.
GOODYEAR TIRE Price and EPS Surprise
GOODYEAR TIRE Price and EPS Surprise | GOODYEAR TIRE Quote
Revenues
Goodyear logged revenues of $3.87 billion, in line with the Zacks Consensus Estimate of $3.87 billion. However, revenues were lower than $4.17 billion posted a year ago, mainly due to unfavorable foreign currency translation and deconsolidation of the subsidiary in Venezuela.
Key Stats/Developments to Note
Goodyear reaffirmed its previous guidance. The company expects annual segment operating income to increase 10–15% in 2016. The company also aims to generate positive free cash flow (excluding pension pre-funding) over this period.
During the reported quarter, Goodyear repurchased 3.6 million shares for $100 million under the previously announced $1.1 billion share repurchase program.
Market Reaction
Goodyear’s share price has increased 2.51% so far in pre-market trading 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!
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free report >>