NASDAQ$GT

Goodyear Tire & Rubber Co · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

Goodyear's Q4 2023 earnings were impacted by lower replacement volume and third-party chemical sales, but adjusted EPS exceeded expectations due to strong operating results in Americas and Asia Pacific.

Goodyear's Q4 2023 net sales decreased by 4.8% year-over-year, driven by lower replacement volume and lower third-party chemical sales. The company reported a net loss of $291 million, compared to a net loss of $104 million in the prior year. However, adjusted earnings per share were $0.47, compared to $0.07 a year ago, driven by strong operating results in Americas and Asia Pacific.

  • Fourth quarter sales decreased 4.8% compared to prior year, driven by lower replacement volume and lower third-party chemical sales.
  • Net loss was $291 million ($1.02 per share loss) compared to a net loss of $104 million ($0.37 per share) a year ago.
  • Adjusted earnings per share on a diluted basis were $0.47 compared to $0.07 a year ago.
  • Segment operating income was $383 million, up $147 million compared to prior year.

Headline financials

Total Revenue

$5.12B

Previous: $5.37B-4.8%
EPS (adj)

$0.47

Previous: $0.07+571.4%
Americas tire units

23.1M

No prior period
EMEA tire units

12.4M

No prior period
Asia Pacific tire units

9.9M

No prior period
Segment operating margin

7.5%

No prior period
Capital Expenditures

-$243M

Previous: $296M-182.1%
Net Income

-$291M

Previous: -$104M-179.8%
Operating Income

-$308M

Previous: -$93M-231.2%
Gross Profit

$1.05B

Previous: $864M+21.1%

Revenue & EPS history

Goodyear · Revenue · Quarterly

$5.12B

Q4 2023-4.8%vs Q4 2022
Beat estimate in 6 of 15 quarters(40%)
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

First quarter 2024 global unit volumes are expected to be down approximately 2%, driven by replacement. Raw material costs are expected to be lower than prior year by approximately $245 million. The net benefit of price/mix versus raw materials is expected to be approximately $115 million.

Tailwinds

  • Raw material costs are expected to be lower than prior year by approximately $245 million.
  • The net benefit of price/mix versus raw materials is expected to be approximately $115 million.
  • Savings to total approximately $50 million during the first quarter, driven by purchasing.
  • Expect low-single digit industry growth in consumer replacement in EMEA.
  • Expect consumer replacement industry to be up low-single digits compared to prior year in Americas.

Headwinds

  • Global unit volumes are expected to be down approximately 2%, driven by replacement.
  • Price/mix is expected to include the negative price impact from indexed agreements and currency-related adjustments (i.e., Brazil).
  • Price/mix also reflects negative mix driven by commercial truck tire industry weakness.
  • The impact of inflation & other costs is expected to be approximately ($25) million compared to the first quarter of 2023.
  • The fire at our operations in Debica, Poland is expected to negatively impact first quarter segment operating income by approximately $15 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 Q4 2023

Historical avgQ4 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%

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