Goodyear tire & rubber company is expected to report its fiscal first-quarter earnings of $0.14 per share, which represents year-over-year growth of over 107% from a loss of -$1.87 per share seen in the same quarter a year ago.
The company, whose brands include Kelly and Dunlop, would report its Q2 2021 period on July 29, 2021. The company would post revenue of $4.134 billion up from $2.1 billion a year ago.
“For Q221, we model group revenue of $4,134m, with volume +70% yoy (-7% vs Q219 levels, vs Q121 at -8%, in line with company commentary for a smaller decline vs 2019 levels in Q2), price/mix +9.8% driven by price increases as well as favourable geographic and channel mix, and FX at +3.5%,” noted Victoria Greer, equity analyst at Morgan Stanley.
“In the SOI walk, we assume volume at +$331m, overhead at +$225m (reversing most of the -$299m unabsorbed fixed cost from Q220), raw materials at -$35m, price/mix at +$105m (stronger than Q121 at +$64m, but with further price increases to come in H2), cost savings vs inflation at -$19m (as the reversal of some one-off cost moves in Q220 more than offsets the Gadsden/Europe savings), and other at +$40m, comping the decline in other tire-related businesses, although tempered by some costs such as marketing returning.”
Goodyear shares surged more than 55% so far this year. The stock slumped about 2% to $17.13 on Friday.
Goodyear Stock Price Forecast
Four analysts who offered stock ratings for Goodyear in the last three…