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Goodyear's (GT) Q3 Earnings Beat Estimates, Down Y/Y

The Goodyear Tire & Rubber Company GT is one of the world’s largest tire manufacturing companies, selling under Goodyear, Kelly, Dunlop, Fulda, Debica, Sava and various other brands.

North America is its leading market. Although it is also expanding in emerging markets to boost profits. Moreover, its capital allocation plan is expected to enhance shareholder value.

However, competitive environment and high overhead expenses are concerns. Moreover, economic weakness in Latin America and Brazil are other challenges.

Estimate Trend & Surprise History

Investors should note that the third-quarter earnings estimate for Goodyear have been increasing over the past 30 days.

Out of the trailing four quarters, the company beat the estimates in three and missed in one, leading to an average beat of 6.19%. Investors have been eagerly awaiting Goodyear’s latest earnings report to see whether it delivers an earnings beat in the first quarter as well.

Zacks Rank

Goodyear currently has a Zacks Rank #2 (Buy), but that could change following its earnings report which was just released. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

We have highlighted some of the key stats from the company’s earnings announcement below:


Goodyear reported adjusted earnings of 71 cents per share in the third quarter of 2017, surpassing the Zacks Consensus Estimate of 67 cents. However, adjusted earnings were lower than $1.17 generated in the year-ago quarter.


Goodyear logged revenues of $3.92 billion, whereas the Zacks Consensus Estimate is $3.91 billion. Moreover, revenues increased from $3.85 billion recorded year-ago. The increase is primarily due to price mix and cost savings.

Key Stats/Developments to Note

During the reported quarter, Goodyear repurchased 5.6 million shares for $175 million under the previously announced $2.1 billion share repurchase program.

The company expects operating income in 2017 to be approximately $1.5 billion, a decline from the previous guidance of within the range of $1.6-1.65 billion.

Check back later for our full write up on Goodyear’s earnings report!

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