Goodyear Tire & Rubber Co. (NASDAQ: GT) saw its stock price plunge 6.90% in after-hours trading following the release of its second-quarter earnings report. The company's results significantly missed analyst expectations, particularly in terms of profitability.
The tire manufacturer reported an adjusted loss per share of $0.17, falling far short of the $0.07 earnings per share that analysts had forecasted. This represents a stark contrast to the $0.19 earnings per share reported in the same quarter last year. Goodyear's adjusted net income for the quarter was negative $48 million, compared to the positive $5.17 million estimate from Wall Street.
While Goodyear's sales of $4.46 billion narrowly missed the consensus estimate of $4.47 billion, the 2.30% year-over-year decline in revenue added to investor concerns. Despite these challenges, the company's management expressed optimism, stating they "expect global trade conditions to stabilize in coming quarters." However, the market's immediate reaction suggests investors are prioritizing the current earnings miss over future outlook, leading to the significant after-hours stock decline.
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