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Goodyear (GT) Earnings Miss Estimate in Q2, Decline Y/Y
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The Goodyear Tire & Rubber Company (GT - Free Report) has reported adjusted earnings per share of 25 cents in second-quarter 2019 compared with 62 cents in the prior-year quarter. Further, its earnings missed the Zack Consensus Estimate of 31 cents. It reported net income of $54 million, down from the net income of $157 million in the year-ago quarter.
The company delivered net revenues of $3.63 billion, lower than $3.84 billion in the year-ago quarter. Also, its revenues missed the Zacks Consensus Estimate of $3.66 billion. The year-over-year decline in revenues was due to currency fluctuations as well as lower volume and sales from other tire-related businesses. These were partly offset by improvements in price/mix.
In the reported quarter, tire volume was 37.4 million units, down 4% from the year-ago quarter. Replacement tire shipments declined less than 1% from the year-ago quarter.
Segment operating income was $219 million, down from $324 million a year ago.
The Goodyear Tire & Rubber Company Price, Consensus and EPS Surprise
Revenues in the Americas segment declined year over year from $2.01 billion to $1.97 billion. The segment’s operating income was $134 million, down from $154 million in second-quarter 2018.
Revenues at the Europe, Middle East and Africa segment were $1.14 billion, down 9% year over year. The segment’s operating income decreased 56% to $44 million.
Revenues at the Asia Pacific segment declined 8% to $520 million. The segment’s operating income declined year over year to $41 million from $70 million.
Financial Position
Goodyear had cash and cash equivalents of $917 million as of Jun 30, 2019, up from $801 million as of Dec 31, 2018. As of Jun 30, 2019, long-term debt and finance leases amounted to $5.77 billion, up from $5.11 billion as of Dec 31, 2018.
Zacks Rank & Stocks to Consider
Currently, Goodyear carries a Zacks Rank#3 (Hold).
Copart has an expected long-term growth rate of 20%. In the past year, shares of the company have shot up 39%.
CarMax has an expected long-term growth rate of 12.6%. In the past year, shares of the company have rallied 19.4%.
Advance Auto Parts has an expected long-term growth rate of 11.6%. In the past year, shares of the company have improved 7.3%.
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Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 7 stocks to watch. The report is only available for a limited time.
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Goodyear (GT) Earnings Miss Estimate in Q2, Decline Y/Y
The Goodyear Tire & Rubber Company (GT - Free Report) has reported adjusted earnings per share of 25 cents in second-quarter 2019 compared with 62 cents in the prior-year quarter. Further, its earnings missed the Zack Consensus Estimate of 31 cents. It reported net income of $54 million, down from the net income of $157 million in the year-ago quarter.
The company delivered net revenues of $3.63 billion, lower than $3.84 billion in the year-ago quarter. Also, its revenues missed the Zacks Consensus Estimate of $3.66 billion. The year-over-year decline in revenues was due to currency fluctuations as well as lower volume and sales from other tire-related businesses. These were partly offset by improvements in price/mix.
In the reported quarter, tire volume was 37.4 million units, down 4% from the year-ago quarter. Replacement tire shipments declined less than 1% from the year-ago quarter.
Segment operating income was $219 million, down from $324 million a year ago.
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
Segments in Detail
Revenues in the Americas segment declined year over year from $2.01 billion to $1.97 billion. The segment’s operating income was $134 million, down from $154 million in second-quarter 2018.
Revenues at the Europe, Middle East and Africa segment were $1.14 billion, down 9% year over year. The segment’s operating income decreased 56% to $44 million.
Revenues at the Asia Pacific segment declined 8% to $520 million. The segment’s operating income declined year over year to $41 million from $70 million.
Financial Position
Goodyear had cash and cash equivalents of $917 million as of Jun 30, 2019, up from $801 million as of Dec 31, 2018. As of Jun 30, 2019, long-term debt and finance leases amounted to $5.77 billion, up from $5.11 billion as of Dec 31, 2018.
Zacks Rank & Stocks to Consider
Currently, Goodyear carries a Zacks Rank#3 (Hold).
Some better-ranked stocks in the auto space are Copart, Inc. (CPRT - Free Report) , CarMax, Inc. (KMX - Free Report) and Advance Auto Parts, Inc. (AAP - Free Report) . While Copart currently sports a Zacks Rank #1 (Strong Buy), CarMax and Advance Auto Parts has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Copart has an expected long-term growth rate of 20%. In the past year, shares of the company have shot up 39%.
CarMax has an expected long-term growth rate of 12.6%. In the past year, shares of the company have rallied 19.4%.
Advance Auto Parts has an expected long-term growth rate of 11.6%. In the past year, shares of the company have improved 7.3%.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 7 stocks to watch. The report is only available for a limited time.
See 7 breakthrough stocks now>>