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Goodyear Tire & Rubber Company Declares Dividend of $0.10

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Price movement

Goodyear Tire & Rubber Company (GT) has a market cap of $8.1 billion. It rose 0.49% to close at $30.74 per share on January 13, 2017. The stock’s weekly, monthly, and year-to-date (or YTD) price movements were -3.5%, -7.4%, and -0.42%, respectively, on the same day.

GT is trading 3.1% below its 20-day moving average, 0.08% below its 50-day moving average, and 4.0% above its 200-day moving average.

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Related ETF and peers

The Schwab US Mid-Cap ETF (SCHM) invests 0.31% of its holdings in GT. The YTD price movement of SCHM was 2.0% on January 13.

The market caps of GT’s competitors are as follows:

  • Cooper Tire & Rubber Company (CTB) — $1.9 billion
  • Boeing Company (BA) — $97.8 billion

GT declared dividend

Goodyear Tire & Rubber Company has declared a quarterly dividend of $0.10 per share on its common stock. The dividend will be paid on March 1, 2017, to shareholders of record on February 1, 2017.

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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.

Projections

Goodyear Tire & Rubber 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

Next, let’s discuss PACCAR (PCAR).

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