Goodyear Tire & Rubber Increases Sales but Misses Revenue Estimate

Before you go, we thought you'd like these...
Before you go close icon

Goodyear Tire & Rubber (NYS: GT) reported earnings on Feb. 14. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Goodyear Tire & Rubber missed estimates on revenues and met expectations on earnings per share.

Compared to the prior-year quarter, revenue increased and GAAP earnings per share expanded.

Gross margins shrank, operating margins dropped, and net margins grew.

Revenue details
Goodyear Tire & Rubber booked revenue of $5.68 billion. The four analysts polled by S&P Capital IQ foresaw a top line of $5.90 billion on the same basis. GAAP reported sales were 12% higher than the prior-year quarter's $5.07 billion.

anImage

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Non-GAAP EPS came in at $0.24. The seven earnings estimates compiled by S&P Capital IQ averaged $0.24 per share on the same basis. GAAP EPS were $0.07 for Q4 versus -$0.73 per share for the prior-year quarter.

anImage

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 15.3%, 220 basis points worse than the prior-year quarter. Operating margin was 2.5%, 70 basis points worse than the prior-year quarter. Net margin was 0.4%, 390 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $5.87 billion. On the bottom line, the average EPS estimate is $0.38.

Next year's average estimate for revenue is $24.53 billion.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 466 members out of 561 rating the stock outperform, and 95 members rating it underperform. Among 142 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 119 give Goodyear Tire & Rubber a green thumbs-up, and 23 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Goodyear Tire & Rubber is outperform, with an average price target of $18.56.

At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story

Want more news like this?

Sign up for Finance Report by AOL and get everything from business news to personal finance tips delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.

From Our Partners