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Goodyear (GT) to Report Q2 Earnings: What's in the Offing?

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The Goodyear Tire & Rubber Company (GT - Free Report) is slated to report second-quarter 2019 earnings on Jul 26, before the market opens. In the last reported quarter, this tire manufacturer witnessed a positive surprise. The company surpassed estimates in two of the trailing four quarters and missed in the other two occasions, the average beat being 66.3%.

Over the past six months, shares of Goodyear have underperformed the industry it belongs to. The stock lost 31.3% while the industry declined 21%.

Let’s see, how things are shaping up for this announcement.

Factors to Consider

The improving industry in the United States and Europe along with rising shares is likely to aid Goodyear’s volume and mix growth. This is likely to have a positive influence on the soon-to-be-released quarterly results.

However, deteriorating market conditions in China, high raw-material costs and a reduced price are a few concerns for Goodyear, which are likely to adversely affect second-quarter 2019 performance.

Earnings Whisper

Our proven model does not conclusively predict that Goodyear is likely to beat on earnings this quarter. This is because, a stock needs to have a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. But that is not the case here as you will see below.

Earnings ESP: Goodyear has an Earnings ESP of -22.98% as the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at 31 cents and 40 cents, respectively. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: The company currently carries a Zacks Rank #3.

Note that we caution against Rank #4 and 5 (Sell-rated) stocks going into the earnings announcement, especially when the company is witnessing negative estimate revisions.

Stocks to Consider

Here are a few auto stocks worth considering, comprising the right combination of elements to come up with an earnings beat this time around:

Cummins Inc (CMI - Free Report) currently has an Earnings ESP of +3.48% and a Zacks Rank of 3. It is slated to release second-quarter 2019 results on Jul 30. You can see the complete list of today’s Zacks #1 Rank stocks here.

Penske Automotive Group, Inc (PAG - Free Report) presently has an Earnings ESP of +0.42% and a Zacks Rank of 3. It is slated to release second-quarter 2019 results on Jul 30.

Dana Incorporated (DAN - Free Report) has an Earnings ESP of +0.45% and a Zacks Rank of 3 at present. It is slated to release second-quarter 2019 results on Jul 31.

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