Today is Tuesday, November 1, 2022.
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Goodyear Deflated by Inflation
Several economic headwinds hit the financial results of Goodyear Tire & Rubber (Nasdaq: GT) on Monday, causing the stock to drop 8.35% in after-hours trading.
Financials: Goodyear reported earnings of $1.07 per share, which was better than expected. But its revenue of $5.31 billion was below estimates.
Selling: Net sales grew 8%. Revenue per tire increased by 16% because of higher prices. The company had sales improvement in the Asia-Pacific region.
Not So Fast: But unit tire volumes dropped 3% in the quarter. Goodyear blamed “persistent inflation” in the quarter, as well as weaker industry demand in Europe and a stronger U.S. dollar.
Stock Price: Goodyear’s stock price is down 41% this year, but is up 19% in the last 30 days.
Final Thoughts: Goodyear can’t escape these inflation problems, but new partnerships in the Americas could improve business in the future.
Notable Earnings Today: Franklin Resources (NYSE: BEN), SoFi Technologies (Nasdasq: SOFI), Advanced Micro Devices (Nasdaq: AMD), Uber Technologies (NYSE: UBER), Devon Energy (NYSE: DVN), Pfizer (NYSE: PFE), Airbnb (Nasdaq: ABNB), BP (NYSE: BP), Energy Transfer (NYSE: ET), Marathon Petroleum (NYSE: MPC), Livent (NYSE: LTHM), Eli Lilly (NYSE: LLY), Chesapeake Energy (Nasdaq: CHK), Enterprise Products Partners (NYSE: EPD), Comstock Resources (NYSE: CRK), Phillips 66 (NYSE: PSX), McKesson (NYSE: MCK), Newmont (NYSE: NEM), Oneok (NYSE: OKE), Toyota (NYSE: TM), MicroStrategy (Nasdaq: MSTR), American International Group (NYSE: AIG), Arconic (NYSE: ARNC), Caesars Entertainment (Nasdaq: CZR), Camping World (NYSE: CWH), Cheesecake Factory (Nasdaq: CAKE), Cirrus Logic (Nasdaq: CRUS), Clorox (NYSE: CLX), CoreCivx (NYSE: CXW), Denny’s (Nasdaq: DENN), Eaton (NYSE: ETN), Electronic Arts (Nasdaq: EA), Extra Space Storage (NYSE: EXR), Fox (Nasdaq: FOXA), Henry Schein (Nasdaq: HSIC), Match Group (Nasdaq: MTCH), McKesson (NYSE: MCK), Molson Coors Brewing (NYSE: TAP), Mondelez International (Nasdaq: MDLZ), Public Storage (NYSE: PSA), Sealed Air (NYSE: SEE), Simon Properties (NYSE: SPG), Sirius XM (Nasdaq: SIRI), Super Micro Computers (Nasdaq: SMCI), Sysco (NYSE: SYY).
Notable IPOs Today: Infinite Group, Inc. Common Stock (Nasdaq: IMCI).
Notable Equity Crowdfunding Campaigns Ending Today: N/A.
Notable Economic Events Today: Manufacturing PMI (9:45 a.m. ET), ISM Manufacturing PMP / Employment (10:00 a.m. ET), JOLTs Job Openings (10:00 a.m. ET), API Weekly Crude Oil Stock (4:30 pm. ET).
NXP ‘Cautious’ Due to Macro Trends
NXP Semiconductors (Nasdaq: NXPI) reported earnings and revenue on Monday that were both better than expected. Shares of the semiconductor company ticked up 1.33% in after-hours trading.
The Bad: The company experienced a “weakening macro-environment” in its consumer business. As a result of these economic uncertainties, NXP says it is “cautious” in the intermediate term.
The Good: Despite this problem, the company’s automotive and industrial units were still strong. Revenue also increased by 20%.
Final Thoughts: Down 36% this year, NXP is another semiconductor stock trying to make a comeback. Its exposure to the growing automotive sector helps.
Avis Bounces on Strong Demand
Shares of Avis Budget Group (Nasdaq: CAR) jumped 3.66% in after-hours trading on Monday after reporting positive financial earnings results that were better than expected.
Final Thoughts: Despite inflation, the company is seeing strong demand. Avis Budget Group is up 16% in 2022.
Trends to Watch
Dog Gone Good Month: Dogecoin’s 102% Spike Steals the Spotlight as October Ends (CoinDesk)
Overwhelmingly: Delta pilots vote in favor of potential strike as contract talks drag on (CNBC)
Simply Gone: TuSimple CEO and co-founder fired by board over ties to Chinese startup Hydron (TechCrunch)
From Feast to Famine: Mortgage Giant Rocket Plunges Back to Earth, Hit by Rising Rates (Wall Street Journal)
Potential Rally: Ethereum flashes a classic bullish pattern in its Bitcoin pair, hinting at 50% upside (Cointelegraph)
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