Goodyear Tire & Rubber (NASDAQ:GT) Shares Gap Down After Earnings Miss

The Goodyear Tire & Rubber Company (NASDAQ:GT) shares gapped down prior to trading on Tuesday following a weaker than expected earnings announcement. The stock had previously closed at $10.52, but opened at $9.19. Goodyear Tire & Rubber shares last traded at $9.1150, with a volume of 4,793,165 shares changing hands.

The company reported $0.39 EPS for the quarter, missing the consensus estimate of $0.45 by ($0.06). Goodyear Tire & Rubber had a negative net margin of 9.56% and a positive return on equity of 2.97%. The business had revenue of $4.92 billion during the quarter, compared to analysts’ expectations of $4.85 billion. During the same quarter in the previous year, the business posted $0.39 EPS. The company’s quarterly revenue was down .6% on a year-over-year basis.

More Goodyear Tire & Rubber News

Here are the key news stories impacting Goodyear Tire & Rubber this week:

• Positive Sentiment: Company press release: Goodyear reported net sales of $4.9B (flat year‑over‑year, +4% organically), segment operating income of $416M (above expectations) and improved segment margin; operating cash flow was strong and Goodyear Forward delivered $192M of benefits — these are constructive for near‑term cash generation and restructuring credibility. PR Newswire
• Positive Sentiment: Cash/operating metrics: third‑party summaries note higher gross profit and a ~17% increase in cash from operations ($1.5B) and reduced capex — supports liquidity and deleveraging flexibility despite a leveraged balance sheet. QuiverQuant
• Neutral Sentiment: Strategic update: coverage notes Goodyear is leaning into its Lawton EV investment and may be repositioning its portfolio — a potential long‑term positive but uncertain near term as analysts reassess fair value assumptions. Yahoo Finance
• Neutral Sentiment: Analyst/metric readouts: Zacks and other outlets provided detailed metric comparisons showing mixed trends versus estimates and last year — useful for modeling but not a clear directional catalyst by itself. Zacks — Key Metrics
• Negative Sentiment: EPS miss and profit weakness: consensus EPS (~$0.45) was missed (reported $0.36–$0.39 in different reports), and operating profit figures declined materially year‑over‑year in some line items — the EPS miss is the primary reason traders sold the stock. Investing.com
• Negative Sentiment: Market reaction and guidance uncertainty: headlines and analysis (MSN, Benzinga) emphasize the mixed headline numbers (profit miss vs revenue beat/in-line) and the resulting drop in the stock; ongoing high leverage (debt/equity) and negative net margin metrics increase investor sensitivity to earnings misses. MSN

Wall Street Analysts Forecast Growth

A number of equities analysts have weighed in on GT shares. Zacks Research cut Goodyear Tire & Rubber from a “strong-buy” rating to a “hold” rating in a report on Friday. Weiss Ratings restated a “sell (d-)” rating on shares of Goodyear Tire & Rubber in a research note on Monday, December 29th. Morgan Stanley raised their price target on shares of Goodyear Tire & Rubber from $6.88 to $7.30 and gave the company an “underweight” rating in a report on Friday, November 28th. Citigroup cut their price objective on shares of Goodyear Tire & Rubber from $10.00 to $9.00 and set a “neutral” rating on the stock in a report on Tuesday, November 11th. Finally, JPMorgan Chase & Co. decreased their price objective on shares of Goodyear Tire & Rubber from $15.00 to $14.00 and set an “overweight” rating for the company in a research report on Monday, October 20th. One equities research analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating, four have given a Hold rating and two have given a Sell rating to the company’s stock. According to MarketBeat.com, the stock currently has an average rating of “Hold” and an average target price of $10.85.

Hedge Funds Weigh In On Goodyear Tire & Rubber

Several large investors have recently modified their holdings of GT. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its stake in Goodyear Tire & Rubber by 4.6% during the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 169,601 shares of the company’s stock valued at $1,567,000 after buying an additional 7,453 shares in the last quarter. United Services Automobile Association bought a new stake in shares of Goodyear Tire & Rubber in the 1st quarter valued at approximately $163,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its position in shares of Goodyear Tire & Rubber by 2.3% during the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 657,411 shares of the company’s stock valued at $6,074,000 after acquiring an additional 15,064 shares in the last quarter. Ameritas Advisory Services LLC acquired a new stake in shares of Goodyear Tire & Rubber during the 2nd quarter valued at approximately $29,000. Finally, Inspire Investing LLC boosted its holdings in Goodyear Tire & Rubber by 3.6% in the second quarter. Inspire Investing LLC now owns 46,061 shares of the company’s stock worth $478,000 after purchasing an additional 1,582 shares during the period. Institutional investors own 84.19% of the company’s stock.

Goodyear Tire & Rubber Trading Down 13.5%

The stock has a market cap of $2.60 billion, a price-to-earnings ratio of -1.50, a P/E/G ratio of 0.79 and a beta of 1.18. The business’s fifty day simple moving average is $9.13 and its 200 day simple moving average is $8.50. The company has a debt-to-equity ratio of 2.29, a current ratio of 1.27 and a quick ratio of 0.71.

Goodyear Tire & Rubber Company Profile

The Goodyear Tire & Rubber Company is a leading tire manufacturer and rubber products supplier with more than a century of innovation in its portfolio. Founded in 1898 by Frank Seiberling in Akron, Ohio, the company has grown into a global enterprise known for its engineering expertise and quality standards. Over its history, Goodyear has pioneered advances in tire technology, from early pneumatic designs to modern high-performance and fuel-efficient solutions.

Goodyear’s core business encompasses the design, production and distribution of tires for a variety of markets, including passenger cars, commercial trucks, off-the-road vehicles, aircraft and specialty applications.