Goodyear Tire & Rubber Beats on EPS but GAAP Results Lag

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Goodyear Tire & Rubber (NYS: GT) reported earnings on April 27. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q1), Goodyear Tire & Rubber missed estimates on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue improved slightly and GAAP earnings per share contracted to a loss.


Margins contracted across the board.

Revenue details
Goodyear Tire & Rubber reported revenue of $5.53 billion. The four analysts polled by S&P Capital IQ foresaw sales of $5.83 billion on the same basis. GAAP reported sales were 2.4% higher than the prior-year quarter's $5.40 billion.

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

EPS details
EPS came in at $0.43. The seven earnings estimates compiled by S&P Capital IQ forecast $0.09 per share. GAAP EPS were -$0.05 for Q1 compared to $0.42 per share for the prior-year quarter.

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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 16.7%, 90 basis points worse than the prior-year quarter. Operating margin was 4.8%, 40 basis points worse than the prior-year quarter. Net margin was -0.1%, 200 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $5.76 billion. On the bottom line, the average EPS estimate is $0.48.

Next year's average estimate for revenue is $23.61 billion. The average EPS estimate is $1.81.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 471 members out of 570 rating the stock outperform, and 99 members rating it underperform. Among 135 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 109 give Goodyear Tire & Rubber a green thumbs-up, and 26 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 $16.78.

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.

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