We spoke with Goodyear on Friday (11/15/19). Key takeaways: Q4 is on target, and the 2020 ‘set up’ appears to be getting even better
We spoke with Mgmt. of Goodyear Tire on Friday. Overall, we concluded that Q4 should be on target with expectations. But more importantly, key earnings drivers (i.e. pricing, raw materials, new fitments, cost savings) seem to be pointing to significant upside in 2020. Mgmt. is acknowledging this. But we sense that they want the Street to bake in a significant cushion (to account for unknowns). This represents a change, and we believe that this could be a good thing (for the stock).
IHS November Revisions – Europe remains the focus
IHS released updated production forecasts on Friday. We noticed a sizable downward revision to Q4 production forecasts for Europe (now -4.6% vs. -2.7% previously). We believe that most suppliers were expecting Q4 Europe down -2.5%-3.5%.