NEW YORK (TheStreet) --Shares of The Goodyear Tire & Rubber Company
(GT - Get Report) are down -4.46% to $25.95 on Tuesday after the company released its first quarter 2014 earnings, which showed losses in Latin America and Asia.
Overall the company reported a 33.3% rise in earnings to 56 cents per share, compared to 42 cents per share during the same quarter last year.
Goodyear's revenue fell -8.2% year-over-year to $4.5 billion from the $4.9 billion reported during the first quarter 2013.
Sales in Latin America fell -18% to $422 million from $513 million reported during the first quarter 2013.
First quarter operating income in Latin America was down -30% to $42 million in the first quarter 2014 from $60 million in the first quarter 2013.
Sales in Asia decreased -13% to $492 million from $567 million reported during the previous year. Operating income was down -23% to $65 million compared to the $84 million reported in the first quarter 2013.
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- This stock has managed to rise its share value by 125.41% over the past twelve months. Turning to the future, naturally, any stock can fall in a major bear market. However, in almost any other environment, the stock should continue to move higher despite the fact that it has already enjoyed nice gains in the past year.
- GOODYEAR TIRE & RUBBER CO has shown improvement in its earnings for its most recently reported quarter when compared with the same quarter a year earlier. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, GOODYEAR TIRE & RUBBER CO increased its bottom line by earning $2.23 versus $0.69 in the prior year. This year, the market expects an improvement in earnings ($3.01 versus $2.23).
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Auto Components industry. The net income increased by 3257.1% when compared to the same quarter one year prior, rising from $7.00 million to $235.00 million.
- GT, with its decline in revenue, underperformed when compared the industry average of 7.3%. Since the same quarter one year prior, revenues slightly dropped by 5.0%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
- Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Auto Components industry and the overall market, GOODYEAR TIRE & RUBBER CO's return on equity significantly exceeds that of both the industry average and the S&P 500.
- You can view the full analysis from the report here: GT Ratings Report
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