Goodyear Tire Shares Rise on Earnings Beat and Increased Turnaround Goals

AKRON, Ohio - Goodyear Tire & Rubber Company (NASDAQ:GT) shares rose 2.8% in after-hours trading following the tire manufacturer's third-quarter earnings announcement that exceeded analyst expectations and its increase in targets for the transformation plan.
Goodyear reported adjusted earnings of $0.37 per share, surpassing the analyst consensus estimate of $0.22. Revenue came in at $4.82 billion, falling short of analysts' forecast of $4.96 billion.
The company reported a net loss of $34 million, or $0.12 per share, compared to a net loss of $89 million, or $0.31 per share, in the same quarter last year. Adjusted net income was $105 million.
Segment operating income increased to $347 million from $336 million last year, while the segment operating margin rose by 70 basis points year-over-year to 7.2%.
CEO Mark Stewart stated, "As a result of the consistent and strong execution of our Goodyear Forward transformation plan, we have achieved segment operating margin expansion for four consecutive quarters."
Goodyear raised its target for gross benefits from the transformation plan to $1.5 billion by the end of 2025, marking an increase of $200 million from the original goal. The company now expects a gross benefit of $450 million from the plan in 2024.
In the third quarter, tire unit volumes decreased by 8.3% year-over-year to 42.5 million units. Revenue fell by 6.2% compared to the same period last year.
The company maintained its targets of a 10% segment operating income margin and a leverage ratio of 2.0x to 2.5x through the fourth quarter of 2025.