The Goodyear Tire & Rubber Company (GT) shares are up 4.71% to $27.13 in morning trading Tuesday after the firm reported fourth quarter earnings results.
The tire company reported earnings, adjusted for non-recurring gains, of $0.59 per share on revenues of $4.36 billion, down 9.1% from a year ago. Analysts were expecting EPS of $0.58 on revenues of $4.39 billion. The Goodyear said sales were hurt by $256 million due to a stronger greenback and $181 million due to lower sales in Europe, the Middle East and Africa.
Full-year results: Goodyear’s FY14 sales came in at $18.1 billion vs. $19.5 billion in FY13. Sales were impacted by $571 million in unfavorable foreign currency translation.
For 2015, the company reaffirmed its earnings growth target of 10%-15% above 2014 results.
On valuation measures, Goodyear Tire & Rubber Co. shares, which currently have an average 3-month trading volume of 3.7 million shares, trade at a trailing-12 P/E of 13.55, a forward P/E of 8.58 and a P/E to growth ratio of 0.84. The median Wall Street price target on the name is $30.75 with a high target of $35.00. Currently ticker boasts 5 ‘Buy’ endorsements, compared to 3 ’Holds’ and 1 ‘Sell’.
Profitability-wise, GT has a t-12 profit and operating margin of 3.00% and 8.48%, respectively. The $7.41B market cap company reported $1.74B in cash vs. $6.86B in debt in its most recent quarter.
GT currently prints a one year loss of about 3%, and a year-to-date loss of 9.09%.
The chart below shows where the equity has traded over the last 52 weeks.
Goodyear Tire & Rubber Co. is a developer and distributer of tires, and related products and services in the United States and internationally. The company was founded in 1898 and is headquartered in Akron, Ohio.