Goldman Sachs commented on CL-Buy rated Goodyear Tire & Rubber (NASDAQ: GT) on Tuesday after it reported Q1 results that missed relative to consensus. Patrick Archambault noted good margins but volume led to an EPS shortfall.

"Revenues for the quarter came in at $4.5bn, below our forecast of $5.0bn. Unit volumes were the main driver which came in at 40mn vs. our 41.0mn est. (up 1%). Jan vol was down -3% globally (down 9% in NA due to disrupted shipments) before recovering to up 2% and up 4% globally in Feb and March. Weak sales from chemicals/other also played a role. As such SOI of $373mn was similarly 10% below our forecast of $417mn though margins were decent at 8.3% vs. our 8.4% forecast – not bad given the lower revenue," said Archambault.

"While the results were close to printed consensus our estimates were higher and so were buy-side expectations in our view. The main culprit was volume. But with global units up 2% in Feb and 4% in March this does bode well for subsequent quarters. Also margins were good and the company did post a 25% increase in SOI, (among the best in our coverage), and reaffirmed its 10%-15% 3-year annual SOI growth target," he added.

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Shares of Goodyear Tire & Rubber closed at $27.21 yesterday.