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Goodyear (GT) Q1 Earnings Surpass Estimates, Decrease Y/Y

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The Goodyear Tire & Rubber Company (GT - Free Report) has reported adjusted earnings per share of 19 cents in first-quarter 2019 compared with 50 cents in the prior-year quarter. The bottom line surpassed the Zack Consensus Estimate of 5 cents. It reported net loss of $44 million against net income of $80 million in the year-ago quarter.

The company delivered net revenues of $3.60 billion, lower than $3.83 billion in the year-ago quarter. Also, the top line beat the Zacks Consensus Estimate of $3.54 billion. The year-over-year decline in revenues was due to currency fluctuations as well as lower volume in international businesses. These effects were partly offset by improvements in price/mix.

During the reported quarter, tire unit volume was 38 million, down3% from the year-ago quarter. Replacement tire shipments were down less than 1% compared with the year-ago quarter.

Segment operating income was $89 million, down 30% year over year.

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 $1.93 billion to $1.88 billion. The segment’s operating income was $89 million, down from $127 million in first-quarter 2018.

Revenues at the Europe, Middle East and Africa segment were $1.22 billion, down 8% year over year. The segment’s operating income decreased 31% to $54 million.

Revenues at the Asia Pacific segment declined 12% to $501 million. The segment’s operating income declined year over year to $47 million from $76 million.

Financial Position

Goodyear had cash and cash equivalents of $860 million as of Mar 31, 2019, up from $801 million as of Dec 31, 2018.As of Mar 31, 2019, long-term debt and finance leases amounted to $5.55billion, up from $4.78 billion as of Dec 31, 2018.

Zacks Rank & Stocks to Consider

Currently, Goodyear carries a Zacks Rank#5 (Strong Sell). A few better-ranked stocks in the broader auto sector are Geely Automobile Holdings Ltd. (GELYY - Free Report) , PACCAR Inc. (PCAR - Free Report) and Fox Factory Holding Corp. (FOXF - Free Report) . While Geely currently sports a Zacks Rank #1 (Strong Buy), PACCAR and Fox Factory carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Geely Automobile has an expected long-term growth rate of 7%. Share price of the company has increased 22.8% in the past three months.

PACCAR has an expected long-term growth rate of 8.4%. Over the past three months, shares of the company have gained 14.5%.

Fox Factory has an expected long-term growth rate of 5%. Shares of the company have gained 28.7% in the past three months.

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