NASDAQ$GT

Goodyear Tire & Rubber Co · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

Goodyear's first quarter results were impacted by weaker industry volumes and inflation, but integration of Cooper Tire was largely completed.

Goodyear's first quarter 2023 results were impacted by weak industry volumes and inflation, but the company is driving toward strong operating results as it moves through the year. Net sales grew 1% compared to Q1 2022, but unit volume was down 7%. The integration of Cooper Tire was largely completed during the quarter.

  • Net sales grew 1% compared with the first quarter of 2022, 4% excluding foreign currency.
  • Unit volume down 7% versus 2022, reflecting a weaker replacement industry driven by a strong comparable period and channel destocking.
  • Strong price/mix of $418 million, exceeded raw material costs by $114 million.
  • Benefitting from Cooper Tire combination; synergies on track.

Headline financials

Total Revenue

$4.94B

Previous: $4.91B+0.7%
EPS (adj)

-$0.29

Previous: $0.37-178.4%
Capital Expenditures

-$291M

Previous: -$276M-5.4%
Free Cash Flow

-$392M

Previous: -$180M-117.8%
Net Income

-$101M

Previous: $96M-205.2%
Operating Income

-$4.89B

Previous: -$4.66B-4.8%
Gross Profit

$748M

Previous: $942M-20.6%
Cash & Equivalents

$1.08B

Previous: $1.05B+2.8%
Total Assets

$23.2B

Previous: $22.6B+2.4%

Revenue & EPS history

Goodyear · Revenue · Quarterly

$4.94B

Q1 2023+0.7%vs Q1 2022
Beat estimate in 6 of 15 quarters(40%)
ActualEstimate

Revenue by segment

Goodyear · $4.94B total across 3 segments · Q1 2023

  • Americas
    $2.87B-1.6%
  • EMEA
    $1.49B+4.6%
  • Asia Pacific
    $582M+2.6%

Forward guidance

Second quarter results are expected to be impacted negatively by the effects of softer industry volume and the ongoing effects of inflation. However, the company is expecting significant growth in Americas segment operating income margin, as well as margin growth in Asia Pacific, driven by the continued benefits of price/mix and improving raw material and other cost trends.

Tailwinds

  • Global consumer OE volume is expected to grow on continued industry recovery and market share gains.
  • We expect improvements in price/mix to exceed raw material cost increases, with a net benefit of ~$200 million.
  • Raw material costs are expected to be higher than prior year by approximately $100 million, an improvement from levels impacting the first quarter of 2023.
  • Expect recovery in replacement volume in China due to a weak comparable period
  • Robust consumer OE growth on industry recovery and benefit of new fitment wins

Headwinds

  • Second quarter results are expected to be impacted negatively by the effects of softer industry volume and the ongoing effects of inflation.
  • Lower production in the first quarter totaling 3.7 million units (of which 0.3 million are commercial) will negatively impact second quarter unabsorbed overhead.
  • Lower production in the second quarter totaling 3.0 million units (of which 0.4 million are commercial) will negatively impact third quarter unabsorbed overhead.
  • Expect consumer replacement industry weakness with continued channel destocking
  • The tornado that impacted operations in Tupelo, MS is expected to negatively impact Q2 operating income by $60 to $80 million.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2023

Historical avgQ1 2023

-2.1%

Avg return

Earnings day

-2.9%

Avg return

5 days after

-2.9%

Avg return

30 days after

44%

30 / 68 earnings

Positive

+17.3%

Q4 2024

Best reaction

-26.3%

Q4 2021

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-6.2%-19.7%-21.8%
Q4 2025-13.5%-10.3%-32.8%
Q3 2025+7.8%+9.9%+22.9%
Q1 2025-0.8%+2.5%-3.4%
Q4 2024+17.3%+30.1%+12.0%
Q3 2024+12.3%+21.5%+31.5%
Q2 2024-15.1%-28.0%-23.9%
Q1 2024+1.5%+5.9%-0.6%
Q4 2023-13.9%-8.5%-6.6%
Q3 2023+2.5%+2.2%+12.1%
Q2 2023-17.5%-21.8%-16.4%
Q1 2023+4.7%+6.4%+23.1%
Q4 2022-6.8%-0.1%-1.9%
Q3 2022-13.7%-18.4%-10.4%
Q2 2022+8.2%+11.2%+8.0%
Q1 2022-16.4%-17.2%-2.8%
Q4 2021-26.3%-24.3%-40.1%
Q3 2021+7.6%+7.6%-2.3%
Q2 2021+7.2%+11.5%+6.9%
Q1 2021+0.0%+8.4%+11.8%
Q4 2020+9.9%+10.5%+41.2%
Q3 2020-13.1%-11.0%+10.3%
Q2 2020-9.4%-4.4%+1.5%
Q1 2020-17.7%-23.8%-5.6%
Q4 2019-10.2%-15.8%-51.6%
Q3 2019+10.8%+8.6%+5.4%
Q2 2019-7.5%-8.2%-24.4%
Q1 2019-1.9%-5.4%-25.2%
Q4 2018-9.2%-9.3%-14.2%
Q3 2018+2.3%+2.4%+9.6%
Q2 2018+14.0%+13.0%+11.5%
Q1 2018-5.5%-6.6%-6.3%
Q4 2017-10.4%-12.3%-14.1%
Q3 2017-7.5%-10.2%-8.9%
Q2 2017-11.4%-11.7%-15.5%
Q1 2017+0.5%-0.8%-8.0%
Q4 2016+3.1%+10.8%+10.0%
Q3 2016-6.6%-10.2%+0.3%
Q2 2016+3.0%+3.1%+3.9%
Q1 2016-8.8%
Q4 2015+8.5%
Q3 2015-1.7%
Q2 2015+0.6%
Q1 2015+4.2%
Q4 2014+5.7%
Q3 2014+7.4%
Q2 2014-8.9%
Q1 2014-7.4%
Q4 2013+10.7%
Q3 2013-2.9%
Q2 2013+8.6%
Q1 2013-2.9%
Q4 2012+1.2%
Q3 2012-7.2%
Q2 2012+11.0%
Q4 2011-8.0%
Q1 2012-5.0%
Q3 2011+1.4%
Q2 2011-5.8%
Q1 2010+9.6%
Q1 2011+1.8%
Q4 2008+14.3%
Q4 2010+14.3%
Q3 2010-12.0%
Q3 2009-12.0%
Q2 2009-10.7%
Q2 2010-10.7%
Q4 2009-10.7%

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