NASDAQ$GT

Goodyear Tire & Rubber Co · Q4 2020 earnings

Q4 2020 earnings · · Investor relations

Briefing

Goodyear's fourth quarter results reflected strong performance driven by cost-saving actions and improvements in price/mix, despite challenges from lower volume and reduced factory utilization.

Goodyear reported Q4 2020 sales of $3.7 billion, a 2% decrease from the prior year. Net income was $63 million, or $0.27 per share, compared to a net loss of $392 million in the prior year. Adjusted net income was $103 million, or $0.44 per share, compared to $45 million in the prior year. The company's segment operating income was $302 million, up 25% from the prior year.

  • Net income of $63 million, adjusted net income of $103 million.
  • Segment operating income of $302 million, up 25% from the prior year.
  • Full-year cash flow from operations of $1.1 billion, reflecting strong working capital performance.
  • Robust cash and liquidity position of $5.4 billion.

Headline financials

Total Revenue

$3.66B

Previous: $3.71B-1.5%
EPS (adj)

$0.44

Previous: $0.19+131.6%
Total tire units

37.7M

No prior period
Capital Expenditures

$160M

Previous: $209M-23.4%
Free Cash Flow

$1.19B

Previous: $1.14B+5.0%
Net Income

$63M

Previous: -$392M+116.1%
Operating Income

$302M

Previous: $242M+24.8%
Gross Profit

$862M

Previous: $810M+6.4%
Cash & Equivalents

$1.5B

Previous: $908M+65.2%
Total Assets

$16.5B

Previous: $17.2B-4.0%

Revenue & EPS history

Goodyear · Revenue · Quarterly

$3.66B

Q4 2020-1.5%vs Q4 2019
Beat estimate in 9 of 16 quarters(56%)
ActualEstimate

Revenue by segment

Goodyear · $3.64B total across 3 segments · Q4 2020

  • Americas
    $1.9B-6.2%
  • EMEA
    $1.2B+5.2%
  • Asia Pacific
    $537M-1.6%

Forward guidance

Goodyear enters 2021 with good momentum, expecting its commercial business to continue outperforming the industry and its consumer replacement business to strengthen. The company anticipates benefiting from its consumer OE pipeline and is positioned to capitalize on stronger industry fundamentals.

Tailwinds

  • Commercial business continues to outperform the industry.
  • Consumer replacement business is strengthening.
  • Beginning to see the benefits of a robust consumer OE pipeline.
  • Positioned to capitalize on stronger industry fundamentals in 2021.
  • Strong cash flow during the fourth quarter.

Headwinds

  • Impact of COVID-19 pandemic.
  • Increases in the prices paid for raw materials and energy.
  • Labor strike, work stoppage or other similar event.
  • Foreign currency translation and transaction risks.
  • Deteriorating economic conditions or an inability to access capital markets.

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 Q4 2020

Historical avgQ4 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%

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