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Goodyear's (GT) Q3 Earnings & Revenues Beat on High Volumes

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The Goodyear Tire and Rubber Company GT reported third-quarter 2021 adjusted earnings per share of 72 cents, surpassing the Zacks Consensus Estimate of 23 cents. The bottom line also increased from the year-ago figure of 10 cents. High sales volumes across all segments, thanks to Cooper Tire buyout synergies buoyed the results.

The company registered net revenues of $4,934 million, surging 42.3% on a year-over-year basis on higher volume, favorable pricing, increased sales from other tire-related business, and synergies from the Cooper Tire buyout. The top line beat the Zacks Consensus Estimate of $4,613.2 million.

In the reported quarter, tire volume was 48.2 million units, up 32% from the year-ago period. Replacement tire shipments increased 44%, benefiting from the buyout of Cooper Tire. Meanwhile, original equipment unit volume fell 7% year over year, affected by lower vehicle production due to shortages of components and materials.

The Goodyear Tire & Rubber Company Price, Consensus and EPS Surprise

The Goodyear Tire & Rubber Company Price, Consensus and EPS Surprise
The Goodyear Tire & Rubber Company Price, Consensus and EPS Surprise

The Goodyear Tire & Rubber Company price-consensus-eps-surprise-chart | The Goodyear Tire & Rubber Company Quote

Segmental Performance

In the reported quarter, the Americas segment generated revenues of $2,967 million, higher than the prior-year period’s $1,823 million. The segment registered an operating income of $259 million, rising from $106 million. Higher volume and favorable price/mix aided the upswing in operating margins.

Revenues in the Europe, Middle East and Africa segment were $1,397 million, rising 21% from the year-ago period. The segment’s operating profit came in at $81 million in the quarter, up from $22million, driven by improvements in price/mix and high volumes.

Revenues in the Asia Pacific segment increased 17% year over year to $570 million. The segment’s operating profit came in at $32 million compared with $34 million a year ago owing to high commodity costs.

Financial Position

Goodyear — which shares space with other auto players like Bridgestone BRDCY, Magna MGA, and Michelin MGDDY — had cash and cash equivalents of $1,187 million as of Sep 30, 2021, down from $1,539 million on Dec 31, 2020. As of the third quarter of 2021, long-term debt and finance leases amounted to $7,153 million, up from $5,432 million on Dec 31, 2020. Currently, Goodyear carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.


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The Goodyear Tire & Rubber Company (GT) : Free Stock Analysis Report

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