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Investing in Goodyear (GT)? Don't Miss Assessing Its International Revenue Trends
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Have you looked into how Goodyear (GT - Free Report) performed internationally during the quarter ending March 2024? Considering the widespread global presence of this tire maker, examining the trends in international revenues is essential for assessing its financial resilience and prospects for growth.
In the modern, closely-knit global economic landscape, the capacity of a business to access foreign markets is often a key determinant of its financial well-being and growth path. Investors now place great importance on grasping the extent of a company's dependence on international markets, as it sheds light on the firm's earnings stability, its skill in leveraging various economic cycles and its broad growth potential.
Participation in global economies acts as a defense against economic difficulties at home and a pathway to more rapidly developing economies. However, it also comes with the complexities of dealing with fluctuating currencies, geopolitical risks and different market dynamics.
In our recent assessment of GT's quarterly performance, we discovered notable trends in its overseas revenue sections, which are typically modeled and scrutinized by Wall Street analysts.
The company's total revenue for the quarter stood at $4.54 billion, declining 8.2% year over year. Now, let's delve into GT's international revenue breakdown to gain insights into the significance of its operations beyond home turf.
A Dive into GT's International Revenue Trends
Europe, Middle East and Africa generated $1.35 billion in revenues for the company in the last quarter, constituting 29.7% of the total. This represented a surprise of -10.14% compared to the $1.5 billion projected by Wall Street analysts. Comparatively, in the previous quarter, Europe, Middle East and Africa accounted for $1.4 billion (27.4%), and in the year-ago quarter, it contributed $1.49 billion (30.2%) to the total revenue.
Asia Pacific accounted for 13.3% of the company's total revenue during the quarter, translating to $602 million. Revenues from this region represented a surprise of +0.78%, with Wall Street analysts collectively expecting $597.35 million. When compared to the preceding quarter and the same quarter in the previous year, Asia Pacific contributed $650 million (12.7%) and $582 million (11.8%) to the total revenue, respectively.
Revenue Projections for Overseas Markets
For the current fiscal quarter, it is anticipated by Wall Street analysts that Goodyear will report a total revenue of $4.83 billion, which reflects a decline of 0.7% from the same quarter in the previous year. The revenue contributions are expected to be 28.1% from Europe, Middle East and Africa ($1.36 billion) and 12.5% from Asia Pacific ($602.57 million).
For the full year, the company is expected to generate $19.82 billion in total revenue, down 1.3% from the previous year. Revenues from Europe, Middle East and Africa and Asia Pacific are expected to constitute 28.8% ($5.7 billion) and 12.7% ($2.52 billion) of the total, respectively.
The Bottom Line
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.
Emphasizing a company's shifting earnings prospects is a key aspect of our approach at Zacks, especially since research has proven its substantial influence on a stock's price in the short run. This correlation is positively aligned, meaning that improved earnings projections tend to boost the stock's price.
Our proprietary stock rating tool, the Zacks Rank, with its externally validated exceptional track record, harnesses the power of earnings estimate revisions to serve as a dependable measure for anticipating the short-term price trends of stocks.
Assessing Goodyear's Stock Price Movement in Recent Times
Over the past month, the stock delivered no returns versus the Zacks S&P 500 composite's 0.3% decrease. The Zacks Auto-Tires-Trucks sector, of which Goodyear is a part, has declined 4.2% over the same period. The company's shares have increased 8.1% over the past three months compared to the S&P 500's 4.1% increase. Over the same period, the sector has declined 3.7%.
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Investing in Goodyear (GT)? Don't Miss Assessing Its International Revenue Trends
Have you looked into how Goodyear (GT - Free Report) performed internationally during the quarter ending March 2024? Considering the widespread global presence of this tire maker, examining the trends in international revenues is essential for assessing its financial resilience and prospects for growth.
In the modern, closely-knit global economic landscape, the capacity of a business to access foreign markets is often a key determinant of its financial well-being and growth path. Investors now place great importance on grasping the extent of a company's dependence on international markets, as it sheds light on the firm's earnings stability, its skill in leveraging various economic cycles and its broad growth potential.
Participation in global economies acts as a defense against economic difficulties at home and a pathway to more rapidly developing economies. However, it also comes with the complexities of dealing with fluctuating currencies, geopolitical risks and different market dynamics.
In our recent assessment of GT's quarterly performance, we discovered notable trends in its overseas revenue sections, which are typically modeled and scrutinized by Wall Street analysts.
The company's total revenue for the quarter stood at $4.54 billion, declining 8.2% year over year. Now, let's delve into GT's international revenue breakdown to gain insights into the significance of its operations beyond home turf.
A Dive into GT's International Revenue Trends
Europe, Middle East and Africa generated $1.35 billion in revenues for the company in the last quarter, constituting 29.7% of the total. This represented a surprise of -10.14% compared to the $1.5 billion projected by Wall Street analysts. Comparatively, in the previous quarter, Europe, Middle East and Africa accounted for $1.4 billion (27.4%), and in the year-ago quarter, it contributed $1.49 billion (30.2%) to the total revenue.
Asia Pacific accounted for 13.3% of the company's total revenue during the quarter, translating to $602 million. Revenues from this region represented a surprise of +0.78%, with Wall Street analysts collectively expecting $597.35 million. When compared to the preceding quarter and the same quarter in the previous year, Asia Pacific contributed $650 million (12.7%) and $582 million (11.8%) to the total revenue, respectively.
Revenue Projections for Overseas Markets
For the current fiscal quarter, it is anticipated by Wall Street analysts that Goodyear will report a total revenue of $4.83 billion, which reflects a decline of 0.7% from the same quarter in the previous year. The revenue contributions are expected to be 28.1% from Europe, Middle East and Africa ($1.36 billion) and 12.5% from Asia Pacific ($602.57 million).
For the full year, the company is expected to generate $19.82 billion in total revenue, down 1.3% from the previous year. Revenues from Europe, Middle East and Africa and Asia Pacific are expected to constitute 28.8% ($5.7 billion) and 12.7% ($2.52 billion) of the total, respectively.
The Bottom Line
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.
Emphasizing a company's shifting earnings prospects is a key aspect of our approach at Zacks, especially since research has proven its substantial influence on a stock's price in the short run. This correlation is positively aligned, meaning that improved earnings projections tend to boost the stock's price.
Our proprietary stock rating tool, the Zacks Rank, with its externally validated exceptional track record, harnesses the power of earnings estimate revisions to serve as a dependable measure for anticipating the short-term price trends of stocks.
At present, Goodyear holds a Zacks Rank #4 (Sell). This ranking implies that its near-term performance might underperform the overall market movement. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Assessing Goodyear's Stock Price Movement in Recent Times
Over the past month, the stock delivered no returns versus the Zacks S&P 500 composite's 0.3% decrease. The Zacks Auto-Tires-Trucks sector, of which Goodyear is a part, has declined 4.2% over the same period. The company's shares have increased 8.1% over the past three months compared to the S&P 500's 4.1% increase. Over the same period, the sector has declined 3.7%.