We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Goodyear Tire (GT - Free Report) delivered a third-quarter 2023 adjusted earnings per share of 36 cents, surpassing the Zacks Consensus Estimate of 17 cents but decreasing from earnings of 40 cents reported in the year-ago quarter.
The company generated net revenues of $5,142 million, falling 3.2% on a year-over-year basis and missing the Zacks Consensus Estimate of $5,155 million due to a weak commercial truck industry and lower other-tire related sales.
In the reported quarter, tire volume was 45.3 million units, down 2.8% from the year-ago period's levels.
The Goodyear Tire & Rubber Company Price, Consensus and EPS Surprise
In the reported quarter, the Americas segment generated revenues of $3,120 million, 5.6% lower than the prior-year period's levels and lagging our estimate of $3,116.3 million due to commercial weakness and lower sales in other-tire related businesses. The segment registered an operating income of $258 million, which decreased 15.7% from the year-ago period's figures. The operating margin was hit by lower volumes. The figure, however, surpassed our expectation of $181.3 million.
Revenues in the Europe, the Middle East and Africa segment were $1,374 million, up 1.2% from the year-ago period's levels, driven by an increase in revenue per tire of 10% and positive foreign currency translation. The figure, however, missed our estimate of $1,451.8 million. The operating income for the segment was $22 million in the quarter, declining 26.7% year over year. The figure, however, surpassed our estimate of an operating income of $14.9 million.
Revenues in the Asia Pacific segment remained flat year over year at $648 million and surpassed our estimate of $604.9 million. The segment’s operating profit was $56 million, up 51.4% from the year-ago figure, owing to the price/mix benefits.
Financial Position
Selling, general & administrative expenses fell to $673 million from $696 million in the year-ago period.
Goodyear had cash and cash equivalents of $1,002 million as of Sep 30, 2023, down from $1,227 million on Dec 31, 2022.
Long-term debt and finance leases amounted to $8,067 million as of Sep 30, 2023, up from $7,267 million on Dec 31, 2022.
Capital expenditure in the quarter was $807 million, up from $765 million in the year-ago quarter.
Revised 2023 Outlook
For 2023, the company now anticipates raw material costs to decrease by $40 million compared with the prior estimate of a rise of $25 million.
Capital expenditures are expected to be $1.05 billion, up from the previous guidance of $1 billion.
The estimates for interest expenses and depreciation and amortization remained unchanged at $540 million and $1 billion, respectively.
The Zacks Consensus Estimate for TM’s 2023 sales and earnings implies year-over-year growth of 10.6% and 29.7%, respectively.
The Zacks Consensus Estimate for MOD’s 2023 sales and earnings indicates year-over-year growth of 6.5% and 55.9%, respectively. The EPS estimates for 2023 and 2024 have increased by 16 cents and 9 cents, respectively, in the past seven days.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Goodyear (GT) Q3 Earnings Surpass Estimates, Decline Y/Y
Goodyear Tire (GT - Free Report) delivered a third-quarter 2023 adjusted earnings per share of 36 cents, surpassing the Zacks Consensus Estimate of 17 cents but decreasing from earnings of 40 cents reported in the year-ago quarter.
The company generated net revenues of $5,142 million, falling 3.2% on a year-over-year basis and missing the Zacks Consensus Estimate of $5,155 million due to a weak commercial truck industry and lower other-tire related sales.
In the reported quarter, tire volume was 45.3 million units, down 2.8% from the year-ago period's levels.
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 $3,120 million, 5.6% lower than the prior-year period's levels and lagging our estimate of $3,116.3 million due to commercial weakness and lower sales in other-tire related businesses. The segment registered an operating income of $258 million, which decreased 15.7% from the year-ago period's figures. The operating margin was hit by lower volumes. The figure, however, surpassed our expectation of $181.3 million.
Revenues in the Europe, the Middle East and Africa segment were $1,374 million, up 1.2% from the year-ago period's levels, driven by an increase in revenue per tire of 10% and positive foreign currency translation. The figure, however, missed our estimate of $1,451.8 million. The operating income for the segment was $22 million in the quarter, declining 26.7% year over year. The figure, however, surpassed our estimate of an operating income of $14.9 million.
Revenues in the Asia Pacific segment remained flat year over year at $648 million and surpassed our estimate of $604.9 million. The segment’s operating profit was $56 million, up 51.4% from the year-ago figure, owing to the price/mix benefits.
Financial Position
Selling, general & administrative expenses fell to $673 million from $696 million in the year-ago period.
Goodyear had cash and cash equivalents of $1,002 million as of Sep 30, 2023, down from $1,227 million on Dec 31, 2022.
Long-term debt and finance leases amounted to $8,067 million as of Sep 30, 2023, up from $7,267 million on Dec 31, 2022.
Capital expenditure in the quarter was $807 million, up from $765 million in the year-ago quarter.
Revised 2023 Outlook
For 2023, the company now anticipates raw material costs to decrease by $40 million compared with the prior estimate of a rise of $25 million.
Capital expenditures are expected to be $1.05 billion, up from the previous guidance of $1 billion.
The estimates for interest expenses and depreciation and amortization remained unchanged at $540 million and $1 billion, respectively.
Zacks Rank & Key Picks
GT currently carries a Zacks Rank #3 (Hold).
Some better-ranked players in the auto space are Toyota Motor (TM - Free Report) and Modine Manufacturing Company (MOD - Free Report) , each sporting Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for TM’s 2023 sales and earnings implies year-over-year growth of 10.6% and 29.7%, respectively.
The Zacks Consensus Estimate for MOD’s 2023 sales and earnings indicates year-over-year growth of 6.5% and 55.9%, respectively. The EPS estimates for 2023 and 2024 have increased by 16 cents and 9 cents, respectively, in the past seven days.