Earnings Preview: Goodyear (GT) Q1 Earnings Expected to Decline
The market expects Goodyear (GT) to deliver a year-over-year decline in earnings on lower revenues when it reports results for the quarter ended March 2019. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell). How Have the Numbers Shaped Up for Goodyear? For Goodyear, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. Does Earnings Surprise History Hold Any Clue? While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number. For the last reported quarter, it was expected that Goodyear would post earnings of $0.60 per share when it actually produced earnings of $0.51, delivering a surprise of -15%.