Goodyear Tire & Rubber Co. (NASDAQ: GT) shares tumbled 9.26% in pre-market trading on Friday following the release of disappointing second-quarter earnings that fell short of analyst expectations.
The tire manufacturer reported an adjusted loss per share of $0.17 for the quarter ended June 30, significantly missing the analysts' consensus estimate of $0.07 earnings per share. This marked a stark reversal from the $0.19 earnings per share posted in the same quarter last year. The company's adjusted net income swung to a loss of $48 million, compared to the $5.17 million profit analysts had anticipated.
While Goodyear's Q2 sales of $4.5 billion slightly beat the Wall Street estimate of $4.42 billion, it still represented a 2.3% year-over-year decline. The company's segment operating income also saw a substantial drop to $159 million, down from $334 million in the previous year, reflecting challenges in its core operations.
CEO Mark Stewart cited industry disruption from global trade shifts and low-cost imports as factors impacting both consumer and commercial businesses. Despite these headwinds, management expressed optimism, stating they "expect global trade conditions to stabilize in coming quarters." However, investors appeared to focus more on the current earnings miss than the future outlook, as reflected in the sharp pre-market stock decline.
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