Goodyear Tire & Rubber Company (GT) has a market cap of $8.1 billion. It rose 1.8% to close at $30.47 per share on November 22, 2016. The stock’s weekly, monthly, and year-to-date (or YTD) price movements were -1.7%, -3.6%, and -5.8%, respectively, on the same day.
GT is trading 3.7% above its 20-day moving average, 1.4% below its 50-day moving average, and 3.4% above its 200-day moving average.
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On November 22, 2016, Berenberg initiated the coverage of Goodyear Tire & Rubber (GT) with a “buy” rating and also set the stock’s price target at $36.00 per share.
Performance of Goodyear Tire & Rubber in 3Q16
Goodyear Tire & Rubber reported 3Q16 net sales of $3.8 billion, a fall of 9.5% from its net sales of $4.2 billion in 3Q15. This fall was due to the deconsolidation of its Venezuelan operations.
Its net income and EPS (earnings per share) rose to $317.0 million and $1.19, respectively, in 3Q16, compared to $271.0 million and $0.99, respectively, in 3Q15. This rise was due to some income tax benefits, and it was partially offset by rationalization charges. GT reported adjusted EPS of $1.17 in 3Q16, a rise of 18.2% over 3Q15.
GT’s cash and cash equivalents fell 33.9%, and its inventories rose 11.8% between 4Q15 and 3Q16. Its current ratio rose to 1.4x, and its debt-to-equity ratio fell to 2.6x in 3Q16, compared to 1.2x and 3.0x, respectively, in 4Q15.
During 3Q16, the company repurchased 1.7 million shares worth $50 million under its share repurchase program.
Goodyear Tire & Rubber (GT) expects total segment operating income of ~$2 billion in 2016. Goodyear has confirmed the following financial targets:
- annual segment operating income of $3.0 billion in 2020
- cumulative free cash flow in the range of $4.3 billion–$4.9 billion between 2017 and 2020
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