Global tire manufacturer Goodyear (NASDAQ: GT) will be announcing earnings results this Wednesday afternoon. Here’s what investors should know.
Goodyear beat analysts’ revenue expectations last quarter, reporting revenues of $4.92 billion, flat year on year. It was a slower quarter for the company, with a significant miss of analysts’ adjusted operating income estimates and a significant miss of analysts’ EPS estimates.
Is Goodyear a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Goodyear’s revenue to decline 11% year on year, a further deceleration from the 6.3% decrease it recorded in the same quarter last year.
Heading into earnings, analysts covering the company have grown increasingly bearish with revenue estimates seeing in majority downward revisions over the last 30 days. Goodyear has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Goodyear’s peers in the automobile manufacturing segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Ford delivered year-on-year revenue growth of 6.4%, beating analysts’ expectations by 3.7%, and Autoliv reported revenues up 6.8%, topping estimates by 4.8%. Ford traded down 1.3% following the results while Autoliv was up 9%.
Read our full analysis of Ford’s results here and Autoliv’s results here.
There has been positive sentiment among investors in the automobile manufacturing segment, with share prices up 7.6% on average over the last month. Goodyear is up 1.5% during the same time and is heading into earnings with an average analyst price target of $8.94 (compared to the current share price of $6.89).
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