Global tire manufacturer Goodyear (NASDAQ: GT) will be announcing earnings results this Wednesday after the bell. Here’s what to expect.
Goodyear beat analysts’ revenue expectations last quarter, reporting revenues of $3.88 billion, down 8.7% year on year. It was a very strong quarter for the company, with a beat 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 5.7% year on year, a further deceleration from the 2.3% decrease it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. 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 Q2 results, giving us a hint as to what we can expect. Rivian delivered year-on-year revenue growth of 27.2%, beating analysts’ expectations by 7.9%, and Mobileye reported flat revenue, topping estimates by 4.7%. Rivian traded down 9.6% following the results while Mobileye was also down 8.3%.
Read our full analysis of Rivian’s results here and Mobileye’s results here.
Over the past year, investors have repeatedly shifted their focus from one macro narrative to another (AI disruption and AI capex spending to geopolitics, interest rates, and the broader health of the economy). While some of the automobile manufacturing stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 2% on average over the last month. Goodyear is up 1.4% during the same time and is heading into earnings with an average analyst price target of $7.46 (compared to the current share price of $7.03).
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