Goodyear Tire & Rubber (NASDAQ:GT) Shares Gap Down on Disappointing Earnings

The Goodyear Tire & Rubber Company (NASDAQ:GT) shares gapped down before the market opened on Tuesday following a dissappointing 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 trading hands.

The company reported $0.39 earnings per share for the quarter, missing the consensus estimate of $0.45 by ($0.06). Goodyear Tire & Rubber had a positive return on equity of 2.97% and a negative net margin of 9.56%.The business had revenue of $4.92 billion for the quarter, compared to analyst estimates of $4.85 billion. During the same quarter last year, the company earned $0.39 EPS. Goodyear Tire & Rubber’s revenue was down .6% compared to the same quarter last year.

Key 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

Analyst Ratings Changes

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

Institutional Trading of Goodyear Tire & Rubber

A number of hedge funds and other institutional investors have recently modified their holdings of the company. Econ Financial Services Corp acquired a new stake in shares of Goodyear Tire & Rubber during the 2nd quarter valued at $923,000. Anderson Financial Strategies LLC acquired a new position in shares of Goodyear Tire & Rubber in the third quarter worth $1,318,000. EVR Research LP purchased a new stake in shares of Goodyear Tire & Rubber during the second quarter worth $10,370,000. JPMorgan Chase & Co. boosted its position in Goodyear Tire & Rubber by 13.8% during the second quarter. JPMorgan Chase & Co. now owns 2,041,518 shares of the company’s stock valued at $21,171,000 after purchasing an additional 247,609 shares during the last quarter. Finally, Monaco Asset Management SAM purchased a new position in Goodyear Tire & Rubber in the second quarter valued at about $726,000. Institutional investors own 84.19% of the company’s stock.

Goodyear Tire & Rubber Stock Performance

The firm has a 50-day simple moving average of $9.13 and a two-hundred day simple moving average of $8.50. The company has a current ratio of 1.27, a quick ratio of 0.71 and a debt-to-equity ratio of 2.29. The company has a market capitalization of $2.60 billion, a price-to-earnings ratio of -1.50, a price-to-earnings-growth ratio of 0.79 and a beta of 1.18.

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.