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Goodyear (GT) to Report Q1 Earnings: What's in the Offing?

Zacks Equity Research

The Goodyear Tire & Rubber Company GT is slated to report first-quarter 2019 earnings on Apr 26, before the market opens. In the last reported quarter, this tire manufacturer witnessed a negative surprise of 15%. The company surpassed estimates in two of the trailing four quarters, the average miss being 0.30%.

Over the past six months, shares of Goodyear have underperformed the industry it belongs to. The stock has lost 1.8% against 4.9% increase recorded by the industry.

Let’s see, how things are shaping up for this announcement.

The Goodyear Tire & Rubber Company Price and EPS Surprise

 

The Goodyear Tire & Rubber Company Price and EPS Surprise | The Goodyear Tire & Rubber Company Quote

Factors to Consider

The improving industry in the United States and Europe, along with rising shares, is likely to drive Goodyear’s volume and mix growth. This is likely to have a positive influence on the soon-to-be-released quarterly results.

However, deteriorating market conditions in China, increased raw-material costs and a reduced price are a few concerns for Goodyear, which are likely to adversely affect first-quarter 2019 performance.

Earnings Whisper

Our proven model does not conclusively predict that Goodyear is likely to beat on earnings this quarter. This is because, a stock needs to have a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. But that is not the case here as you will see below.

Earnings ESP: Goodyear has an Earnings ESP of 92.86% as the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at 9 cents and 5 cents, respectively. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: The company currently carries a Zacks Rank #5 (Strong Sell).

Note that we caution against Rank #4 (Sell) and 5 stocks going into the earnings announcement, especially when the company is witnessing negative estimate revisions.

Stocks to Consider

Here are a few auto stocks worth considering, comprising the right combination of elements to come up with an earnings beat this time around:

Wabco Holdings Inc. WBC has an Earnings ESP of +2.37% and a Zacks Rank of 3 at present. The company is expected to release financial results for first-quarter 2019 on Apr 26.

You can see the complete list of today’s Zacks #1 Rank stocks here.

Cummins Inc. CMI has an Earnings ESP of +2.02% and a Zacks Rank #3 at present. The company’s financial results for first-quarter 2019 are slated to release on Apr 30.

General Motors Company GM has an Earnings ESP of +5.61% and a Zacks Rank #3 at present. The company’s financial results for first-quarter 2019 are slated to release on Apr 30.

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