Goodyear Tire & Rubber Co. (NASDAQ: GT) saw its stock price plunge 7.41% in a 24-hour period following the release of its disappointing second-quarter earnings report. The tire manufacturer's results significantly missed analyst expectations, particularly in terms of profitability, leading to a sharp sell-off in the stock.
The company 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 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.
Further compounding the negative sentiment, Goodyear's segment operating income dropped to $159 million, significantly lower than the previous year. 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 stock decline.
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