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Goodyear (GT) Q1 Earnings & Sales Top Estimates, Profit Down Y/Y
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The Goodyear Tire & Rubber Company (GT - Free Report) reported first-quarter 2021 adjusted earnings per share of 43 cents, surpassing the Zacks Consensus Estimate of 8 cents. Higher-than-expected operating income from the Europe, Middle East and Africa (EMEA) and Asia Pacific units drove to this outperformance.
However, the bottom line compares unfavorably with the earnings per share of 60 cents recorded in the prior-year quarter.
The company registered net revenues of $3,511 million, higher than the $3,056 million reported in the year-ago quarter on greater volume, improvements in price/mix and favorable currency translation. Moreover, revenues beat the Zacks Consensus Estimate of $3,411 million.
For the reported quarter, tire volume was 35 million units, up 12% from the year-ago period. Replacement tire shipments increased 14% year on year, reflecting sustained industry recovery and market share gains. Original equipment unit volume climbed 5% year on year on increased market share in the EMEA segment and higher vehicle production in the Asia-Pacific segment.
Key Takeaways
For the reported quarter, the Americas segment generated revenues of $1,787 million, which compares favorably with the prior-year period’s $1,673 million. This was aided by higher volume and improvements in price/mix, partially offset by unfavorable foreign-currency translation. The reported figure, however, missed the Zacks Consensus Estimate of $1,842 million. The segment registered an operating income of $114 million, missing the consensus mark of $120 million.
Revenues in the Europe, Middle East and Africa segment were $1,231 million, up from the prior year’s $995 million. The reported figure also exceeded the Zacks Consensus Estimate of $1,205 million. The segment’s operating profit increased to $74 million during the quarter, against the loss of $53 million witnessed in the prior quarter, driven by improvements in price/mix and favorable foreign-currency translation. The reported profit figure also topped the Zacks Consensus Estimate of $47.9 million.
Revenues in the Asia Pacific segment increased 27% year over year to $493 million. The reported figure also topped the consensus mark of $479 million. The segment’s operating profit came in at $38 million for the quarter, higher than the $6 million recorded in the corresponding period of 2020. The reported profit figure also topped Zacks Consensus Estimate of $34.3 million.
Goodyear — peers of which include Cooper Tire & Rubber Company , Bridgestone Corp. (BRDCY - Free Report) and Michelin (MGDDY - Free Report) — had cash and cash equivalents of $1,223 million as of Mar 31, 2021, up from $971 million on Mar 31, 2020. As of Mar 31, 2021, long-term debt and finance leases amounted to $5,326 million, up from $5,212 million on Mar 31, 2020. Cash outflow from operating activities as of Mar 31, 2021 summed $282 million, compared with the outflow of $581 million on Mar 31, 2020.
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Goodyear (GT) Q1 Earnings & Sales Top Estimates, Profit Down Y/Y
The Goodyear Tire & Rubber Company (GT - Free Report) reported first-quarter 2021 adjusted earnings per share of 43 cents, surpassing the Zacks Consensus Estimate of 8 cents. Higher-than-expected operating income from the Europe, Middle East and Africa (EMEA) and Asia Pacific units drove to this outperformance.
However, the bottom line compares unfavorably with the earnings per share of 60 cents recorded in the prior-year quarter.
The company registered net revenues of $3,511 million, higher than the $3,056 million reported in the year-ago quarter on greater volume, improvements in price/mix and favorable currency translation. Moreover, revenues beat the Zacks Consensus Estimate of $3,411 million.
For the reported quarter, tire volume was 35 million units, up 12% from the year-ago period. Replacement tire shipments increased 14% year on year, reflecting sustained industry recovery and market share gains. Original equipment unit volume climbed 5% year on year on increased market share in the EMEA segment and higher vehicle production in the Asia-Pacific segment.
Key Takeaways
For the reported quarter, the Americas segment generated revenues of $1,787 million, which compares favorably with the prior-year period’s $1,673 million. This was aided by higher volume and improvements in price/mix, partially offset by unfavorable foreign-currency translation. The reported figure, however, missed the Zacks Consensus Estimate of $1,842 million. The segment registered an operating income of $114 million, missing the consensus mark of $120 million.
Revenues in the Europe, Middle East and Africa segment were $1,231 million, up from the prior year’s $995 million. The reported figure also exceeded the Zacks Consensus Estimate of $1,205 million. The segment’s operating profit increased to $74 million during the quarter, against the loss of $53 million witnessed in the prior quarter, driven by improvements in price/mix and favorable foreign-currency translation. The reported profit figure also topped the Zacks Consensus Estimate of $47.9 million.
Revenues in the Asia Pacific segment increased 27% year over year to $493 million. The reported figure also topped the consensus mark of $479 million. The segment’s operating profit came in at $38 million for the quarter, higher than the $6 million recorded in the corresponding period of 2020. The reported profit figure also topped Zacks Consensus Estimate of $34.3 million.
Goodyear — peers of which include Cooper Tire & Rubber Company , Bridgestone Corp. (BRDCY - Free Report) and Michelin (MGDDY - Free Report) — had cash and cash equivalents of $1,223 million as of Mar 31, 2021, up from $971 million on Mar 31, 2020. As of Mar 31, 2021, long-term debt and finance leases amounted to $5,326 million, up from $5,212 million on Mar 31, 2020. Cash outflow from operating activities as of Mar 31, 2021 summed $282 million, compared with the outflow of $581 million on Mar 31, 2020.
Currently, Goodyear carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.
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