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Goodyear (GT) Q4 Earnings Beat Estimates, Rise Y/Y

The Goodyear Tire & Rubber CompanyGT is one of the world's largest tire manufacturing companies, selling under Goodyear, Kelly, Dunlop, Fulda, Debica, Sava and various other brands. The company regularly launches innovative products and services to boost sales. Although Goodyear generates worldwide sales, North America is its leading market. It is also expanding in emerging markets to boost profits.

Goodyear is benefitting from lower raw material costs, strong economic trends in North America and continued cost savings, partially offset by a challenging international environment and unfavorable foreign currency translation. Goodyear's revenue has been declining over the years.

Estimate Trend & Surprise History

Investors should note that the fourth-quarter earnings estimate for Goodyear have been stable over the past month.

The company delivered positive earnings surprises in each of the last four quarter with an average beat of 10.24%. Investors have been eagerly awaiting Goodyear's latest earnings report to see whether it delivers an earnings beat in the second quarter as well.

The Goodyear Tire & Rubber Company Price and EPS Surprise

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

Zacks Rank

Goodyear currently has a Zacks Rank #3 (Hold), but that could change following its earnings report which was just released. You can see the complete list of today's Zacks #1 Rank stocks here.

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

Earnings

Goodyear reported adjusted earnings of 95 per share in the fourth quarter of 2016, surpassing the Zacks Consensus Estimate of 87 cents. Adjusted earnings were higher than 93 cents generated in the year-ago quarter.

Revenues

Goodyear logged revenues of $3.74 billion, missed the Zacks Consensus Estimate of $3.84 billion. Revenues were also lower than $4.06 billion posted a year ago, mainly due to deconsolidation of the subsidiary in Venezuela.

Key Stats/Developments to Note

During the reported quarter, Goodyear repurchased 9.8 million shares for $300 million under the previously announced $1.1 billion share repurchase program.

The Board of Directors also authorized a $1 billion increase in the share repurchase program. With this, the company has a total authorization of $2.1 billion.

Market Reaction

Goodyear's shares were inactive following the release. It would be interesting to see how the market reacts to the results during the trading session today.

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

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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