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Goodyear (GT) Earnings Miss Estimates in Q4, Decrease Y/Y
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The Goodyear Tire & Rubber Company (GT - Free Report) has reported adjusted earnings per share of 51 cents in fourth-quarter 2018 compared with 99 cents in the prior-year quarter.
The bottom line missed the Zack Consensus Estimate of 60 cents. The company reported net income of $110 million against net loss of $96 million in the year-ago quarter.
The company delivered net revenues of $3.88 billion, lower than $4.07 billion in the year-ago quarter. The top line missed the Zacks Consensus Estimate of $3.93 billion. During the quarter under review, revenues were impacted by lower volume and currency fluctuations. These effects were partly offset by improvements in price/mix.
During the reported quarter, tire unit volume was 40.7 million, down3% from the year-ago quarter. Replacement tire shipments were nearly flat while original equipment unit volume fell 10% from the prior-year quarter.
Segmental operating income was $307 million, down from $430 million in fourth-quarter 2017.
2018 Results
For 2018, adjusted earnings per share were $2.32, down from $3.12 in 2017.
Revenues in 2018 were $15.5 billion, up 1% from the 2017 figure.
The Goodyear Tire & Rubber Company Price, Consensus and EPS Surprise
Revenues in the Americas’ segment declined year over year from $2.18 billion to $2.11 billion. Segment’s operating income was $179 million, down from $217 million in fourth-quarter 2017.
Revenues at the Europe, Middle East and Africa segment were $1.21 billion, down 4% year over year. The segment’s operating income decreased 23% to $74 million.
Revenues at the AsiaPacific segment declined 11% to $552 million. The segment’s operating income declined to $54 million year over year from $117 million.
Financial Position
Goodyear had cash and cash equivalents of $801 million as of Dec 31, 2018, down from $1.04 billion as of Dec 31, 2017. Long-term debt and capital leases amounted to $243 million as of Dec 31, 2018, up from $391 million as of Dec 31, 2017.
Capital Deployment
During the reported quarter, Goodyear repurchased 897000 shares for $20 million under the previously announced $2.1-billion share buyback program.
Since the beginning of the program in 2013, the company has bought back 52.9 million shares for $1.5 billion.
Zacks Rank & Stocks to Consider
Currently, Goodyear carries a Zacks Rank#5 (Strong Sell).
Dana has an expected long-term growth rate of 2.9%. Over the past three months, shares of the company have risen 13.8%.
Oshkosh has an expected long-term growth rate of 11.3%. Over the past three months, shares of the company have surged 13.6%.
Toyota has an expected long-term growth rate of 5.2%. Over the past three months, shares of the company have risen 0.6%.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
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Goodyear (GT) Earnings Miss Estimates in Q4, Decrease Y/Y
The Goodyear Tire & Rubber Company (GT - Free Report) has reported adjusted earnings per share of 51 cents in fourth-quarter 2018 compared with 99 cents in the prior-year quarter.
The bottom line missed the Zack Consensus Estimate of 60 cents. The company reported net income of $110 million against net loss of $96 million in the year-ago quarter.
The company delivered net revenues of $3.88 billion, lower than $4.07 billion in the year-ago quarter. The top line missed the Zacks Consensus Estimate of $3.93 billion. During the quarter under review, revenues were impacted by lower volume and currency fluctuations. These effects were partly offset by improvements in price/mix.
During the reported quarter, tire unit volume was 40.7 million, down3% from the year-ago quarter. Replacement tire shipments were nearly flat while original equipment unit volume fell 10% from the prior-year quarter.
Segmental operating income was $307 million, down from $430 million in fourth-quarter 2017.
2018 Results
For 2018, adjusted earnings per share were $2.32, down from $3.12 in 2017.
Revenues in 2018 were $15.5 billion, up 1% from the 2017 figure.
The Goodyear Tire & Rubber Company Price, Consensus and EPS Surprise
The Goodyear Tire & Rubber Company Price, Consensus and EPS Surprise | The Goodyear Tire & Rubber Company Quote
Segment Details
Revenues in the Americas’ segment declined year over year from $2.18 billion to $2.11 billion. Segment’s operating income was $179 million, down from $217 million in fourth-quarter 2017.
Revenues at the Europe, Middle East and Africa segment were $1.21 billion, down 4% year over year. The segment’s operating income decreased 23% to $74 million.
Revenues at the AsiaPacific segment declined 11% to $552 million. The segment’s operating income declined to $54 million year over year from $117 million.
Financial Position
Goodyear had cash and cash equivalents of $801 million as of Dec 31, 2018, down from $1.04 billion as of Dec 31, 2017. Long-term debt and capital leases amounted to $243 million as of Dec 31, 2018, up from $391 million as of Dec 31, 2017.
Capital Deployment
During the reported quarter, Goodyear repurchased 897000 shares for $20 million under the previously announced $2.1-billion share buyback program.
Since the beginning of the program in 2013, the company has bought back 52.9 million shares for $1.5 billion.
Zacks Rank & Stocks to Consider
Currently, Goodyear carries a Zacks Rank#5 (Strong Sell).
A few better-ranked stocks in the auto space are Dana Inc. (DAN - Free Report) , Oshkosh Corp. (OSK - Free Report) and Toyota Motor Corp. (TM - Free Report) . While Dana currently sports a Zacks Rank #1 (Strong Buy), Oshkosh and Toyota carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Dana has an expected long-term growth rate of 2.9%. Over the past three months, shares of the company have risen 13.8%.
Oshkosh has an expected long-term growth rate of 11.3%. Over the past three months, shares of the company have surged 13.6%.
Toyota has an expected long-term growth rate of 5.2%. Over the past three months, shares of the company have risen 0.6%.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>