Goodyear Earnings: Here’s Why Investors are Buying Shares Now
Goodyear Tire & Rubber Co. (NYSE:GT) delivered a profit and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are up 3.48%.
Goodyear Tire & Rubber Co. Earnings Cheat Sheet
Results: Adjusted Earnings Per Share decreased 70.59% to $0.10 in the quarter versus EPS of $0.34 in the year-earlier quarter.
Revenue: Decreased 12.29% to $4.85 billion from the year-earlier quarter.
Actual vs. Wall St. Expectations: Goodyear Tire & Rubber Co. reported adjusted EPS income of $0.10 per share. By that measure, the company missed the mean analyst estimate of $0.31. It missed the average revenue estimate of $5.1 billion.
Quoting Management: “Despite a tough economic environment, we continue to achieve solid earnings improvement,” said Richard J. Kramer, chairman and chief executive officer. “Our first quarter earnings demonstrate that our strategic focus on improving productivity and selling innovative products in targeted market segments where our brands add value is working, especially in North America, where our business continues to outperform expectations.”
Key Stats (on next page)…
Revenue decreased 3.81% from $5.05 billion in the previous quarter. EPS decreased 74.36% from $0.39 in the previous quarter.
Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.62 to a profit $0.52. For the current year, the average estimate has moved down from a profit of $2.31 to a profit of $2.03 over the last ninety days.
Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute – click here and get our CHEAT SHEET stock picks now.
(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)