NASDAQ$GT

Goodyear Tire & Rubber Co · Q2 2020 earnings

Q2 2020 earnings · · Investor relations

Briefing

Goodyear's second quarter results were significantly affected by the COVID-19 pandemic, but decisive actions helped mitigate the impact.

Goodyear's Q2 2020 sales were $2.1 billion, a 41% decrease from the previous year. The company reported a net loss of $696 million, or $2.97 per share, compared to a net income of $54 million, or $0.23 per share, in the prior year. The decline was driven by lower industry volume and reduced sales from other tire-related businesses, partially offset by improvements in price/mix.

  • First half results significantly affected by COVID-19 pandemic.
  • Second quarter cash flow significantly better than expected.
  • Strong cash and liquidity position maintained; $3.9 billion available at quarter end.
  • Volume trends in key markets improved throughout the second quarter; China consumer replacement volume increased year-over-year in both May and June.

Headline financials

Total Revenue

$2.14B

Previous: $3.63B-41.0%
EPS (adj)

-$1.87

Previous: $0.25-848.0%
Total tire units

20.4M

No prior period
Capital Expenditures

-$363M

Previous: -$401M+9.5%
Free Cash Flow

-$1.06B

Previous: -$347M-205.2%
Net Income

-$696M

Previous: $54M-1388.9%
Operating Income

-$2.96B

Previous: -$3.44B+14.1%
Gross Profit

-$72M

Previous: $777M-109.3%
Cash & Equivalents

$1.01B

Previous: $917M+9.7%
Total Assets

$15.8B

Previous: $18.5B-14.3%

Revenue & EPS history

Goodyear · Revenue · Quarterly

$2.14B

Q2 2020-41%vs Q2 2019
Beat estimate in 10 of 16 quarters(63%)
ActualEstimate

Revenue by segment

Goodyear · $2.14B total across 3 segments · Q2 2020

  • Americas
    $1.13B
  • EMEA
    $676M
  • Asia Pacific
    $334M

Forward guidance

While we are encouraged to see industry demand gradually recovering in most major markets, our plans for the second half consider the challenges and uncertainties that remain.

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 Q2 2020

Historical avgQ2 2020

-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%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro