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Market Overview

Earnings Preview: Goodyear Tire & Rubber


On Friday, October 30, Goodyear Tire & Rubber (NASDAQ: GT) will release its latest earnings report. Here is Benzinga's outlook for the company.

Net Income, Earnings, And Earnings Per Share

Earnings and especially earnings per share (EPS) are useful measures of a company's profitability. Total earnings, which is also referred to as net income, equals total revenue minus total expenses. EPS equals to net income divided by the number of shares outstanding.

Earnings And Revenue

Analysts covering Goodyear Tire & Rubber have modeled for quarterly EPS loss of $0.06 on revenue of $3.29 billion. In the same quarter last year, Goodyear Tire & Rubber reported earnings per share of $0.45 on revenue of $3.80 billion.

What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?

Wall Street analysts who study this company will publish analyst estimates of revenue and EPS. The averages of all analyst EPS and revenue estimates are called the "consensus estimates"; these consensus estimates can have a significant effect on a company's performance during an earnings release. When a company posts earnings or revenue above or below a consensus estimate, it has posted an "earnings surprise", which can really move a stock depending on the difference between actual and estimated values.

If the company were to match the consensus estimate when it reports Friday, earnings would be down 113.33%. Revenue would be down 13.47% on a year-over-year basis. The company's reported EPS has stacked up against analyst estimates in the past like this:

Quarter Q2 2020 Q1 2020 Q4 2020 Q3 2019
EPS Estimate -2.07 -0.15 0.52 0.52
EPS Actual -1.87 -0.60 0.19 0.45
Revenue Estimate 1.87 B 3.24 B 3.89 B 3.92 B
Revenue Actual 2.14 B 3.06 B 3.71 B 3.80 B

Stock Performance

Shares of Goodyear Tire & Rubber were trading at $9.53 as of October 28. Over the last 52-week period, shares are down 39.77%. Given that these returns are generally negative, long-term shareholders are probably a little upset going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Goodyear Tire & Rubber is scheduled to hold the call at 09:15:00 ET and can be accessed here.


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Posted-In: Earnings