NASDAQ$GT

Goodyear Tire & Rubber Co · Q4 2021 earnings

Q4 2021 earnings · · Investor relations

Briefing

Goodyear's Q4 2021 results were released, showcasing revenue growth and increased profitability.

Goodyear reported a strong fourth quarter in 2021, achieving its highest Q4 revenue in nearly 10 years, driven by the Cooper Tire merger, improvements in price/mix, increased sales from other tire-related businesses, and higher volume. Net income was $553 million, or $1.93 per share, compared to $63 million, or $0.27 per share, in the prior year. Merger-adjusted segment operating income increased by 32% year-over-year.

  • Net sales increased by 38% compared to Q4 2020, with 12% growth excluding the Cooper Tire transaction.
  • Goodyear's net income for the fourth quarter was $553 million, with adjusted net income reaching $162 million.
  • Merger-adjusted segment operating income rose to $398 million, marking a 32% increase from the fourth quarter of 2020.
  • Tire unit volumes increased to 48.6 million, up 29% from the previous year's period.

Headline financials

Total Revenue

$5.05B

Previous: $3.66B+38.2%
EPS (adj)

$0.57

Previous: $0.44+29.5%
Total tire units

48.6M

Previous: 37.7M+28.9%
Capital Expenditures

$315M

Previous: $160M+96.9%
Free Cash Flow

$749M

Previous: $1.19B-37.3%
Net Income

$553M

Previous: $63M+777.8%
Operating Income

$391M

Previous: $302M+29.5%
Gross Profit

$1.09B

Previous: $862M+25.9%
Cash & Equivalents

$1.09B

Previous: $1.5B-27.5%
Total Assets

$21.4B

Previous: $16.5B+29.7%

Revenue & EPS history

Goodyear · Revenue · Quarterly

$5.05B

Q4 2021+38.2%vs Q4 2020
Beat estimate in 9 of 16 quarters(56%)
ActualEstimate

Revenue by segment

Goodyear · $5.14B total across 3 segments · Q3 2023

  • Americas
    $3.12B-5.6%
  • EMEA
    $1.37B+1.2%
  • Asia Pacific
    $648M-0.2%

Forward guidance

Goodyear expects inflationary pressures to persist over the next several quarters and remains focused on executing strategies to capture value in the marketplace and managing costs. The company is pleased with the pace of integration of Cooper Tire and continues to make solid progress toward the increased synergy targets.

Tailwinds

  • Focused on executing strategies to capture value in the marketplace
  • Managing costs
  • Pleased with the pace of integration of Cooper Tire
  • Making solid progress toward the increased synergy targets
  • Confident in positioning the business to deliver strong sales and earnings growth over the long-term

Headwinds

  • Expects inflationary pressures to persist over the next several quarters
  • Higher raw material costs
  • Inflationary cost pressures in wages, benefits, transportation and energy
  • Increased U.S. manufacturing costs related to higher employee turnover
  • Lower vehicle production

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 2021

Historical avgQ4 2021

-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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