Goodyear Tire & Rubber (NASDAQ:GT) Releases Earnings Results, Beats Expectations By $0.04 EPS

Key Points

• Quarterly beat: Goodyear reported EPS of ($0.39), beating estimates by $0.04, and revenue of $3.88B (vs. $3.81B expected) although revenue was down 8.7% YoY.
• Profitability and balance-sheet signals: The company posted a negative net margin of 9.41% with modest ROE (3.21%), a debt-to-equity ratio of 1.57 and limited liquidity (current ratio 1.06, quick ratio 0.54).
• Market and analyst view: Shares traded around $7.30 (market cap ~$2.09B) with an average analyst rating of Hold and a consensus target price of $9.11; institutional ownership is ~84%.

Goodyear Tire & Rubber (NASDAQ:GT - Get Free Report) posted its quarterly earnings results on Wednesday. The company reported ($0.39) EPS for the quarter, topping analysts' consensus estimates of ($0.43) by $0.04, FiscalAI reports. The company had revenue of $3.88 billion for the quarter, compared to analysts' expectations of $3.81 billion. Goodyear Tire & Rubber had a negative net margin of 9.41% and a positive return on equity of 3.21%. Goodyear Tire & Rubber's revenue was down 8.7% on a year-over-year basis. During the same quarter in the previous year, the firm posted ($0.04) EPS.

Goodyear Tire & Rubber Stock Performance

Goodyear Tire & Rubber stock traded up $0.22 during mid-day trading on Wednesday, reaching $7.30. The company's stock had a trading volume of 8,139,735 shares, compared to its average volume of 7,807,597. Goodyear Tire & Rubber has a 12-month low of $6.14 and a 12-month high of $12.03. The company has a market capitalization of $2.09 billion, a P/E ratio of -1.22, a PEG ratio of 0.65 and a beta of 1.17. The company has a debt-to-equity ratio of 1.57, a quick ratio of 0.54 and a current ratio of 1.06. The firm's fifty day moving average price is $7.08 and its two-hundred day moving average price is $8.06.

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of GT. Focus Partners Wealth purchased a new position in Goodyear Tire & Rubber in the 3rd quarter valued at approximately $25,000. Los Angeles Capital Management LLC purchased a new position in shares of Goodyear Tire & Rubber during the 4th quarter valued at $26,000. EFG International AG purchased a new position in shares of Goodyear Tire & Rubber during the 4th quarter valued at $26,000. Parallel Advisors LLC grew its position in shares of Goodyear Tire & Rubber by 55.5% during the 4th quarter. Parallel Advisors LLC now owns 7,114 shares of the company's stock valued at $62,000 after purchasing an additional 2,538 shares in the last quarter. Finally, Moors & Cabot Inc. purchased a new position in shares of Goodyear Tire & Rubber during the 3rd quarter valued at $80,000. 84.19% of the stock is currently owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

A number of equities research analysts recently commented on GT shares. TD Cowen lowered their price target on shares of Goodyear Tire & Rubber from $10.00 to $9.00 and set a "buy" rating on the stock in a report on Wednesday, April 15th. Zacks Research cut shares of Goodyear Tire & Rubber from a "strong-buy" rating to a "hold" rating in a report on Friday, February 6th. JPMorgan Chase & Co. lowered their price target on shares of Goodyear Tire & Rubber from $11.00 to $10.00 and set an "overweight" rating on the stock in a report on Thursday, April 23rd. Citigroup lifted their price target on shares of Goodyear Tire & Rubber from $9.00 to $10.00 and gave the stock a "neutral" rating in a report on Thursday, February 12th. Finally, Deutsche Bank Aktiengesellschaft lowered their price target on shares of Goodyear Tire & Rubber from $12.00 to $9.00 and set a "buy" rating on the stock in a report on Thursday, April 16th. Three investment analysts have rated the stock with a Buy rating, four have given a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat.com, the company currently has an average rating of "Hold" and an average target price of $9.11.

About Goodyear Tire & Rubber

The Goodyear Tire & Rubber Company is a leading tire manufacturer and rubber products supplier with more than a century of innovation in its portfolio. Founded in 1898 by Frank Seiberling in Akron, Ohio, the company has grown into a global enterprise known for its engineering expertise and quality standards. Over its history, Goodyear has pioneered advances in tire technology, from early pneumatic designs to modern high-performance and fuel-efficient solutions.

Goodyear's core business encompasses the design, production and distribution of tires for a variety of markets, including passenger cars, commercial trucks, off-the-road vehicles, aircraft and specialty applications.

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