GT - Why Goodyear Stock Is Deflating Today
2024-02-13 10:41:27 ET
Goodyear Tire & Rubber 's (NASDAQ: GT) quarterly earnings came in better than expected, but the company still has a lot of work to do before it returns to the fast lane. Shares of Goodyear traded down about 13% as of 10:30 a.m. ET after the company detailed the challenges it sees up ahead.
The automotive market is sputtering, which is having an impact on demand for tires. Goodyear reported fourth-quarter earnings of $0.47 per share, beating the $0.36-per-share consensus thanks to strong pricing relative to the cost of raw materials. But sales of tires fell by about 3.8% in 2023, and the company sees global tire volumes falling by about 2% in the current quarter.
It's not all bad news, as Goodyear does expect raw material costs to be down year over year. But Goodyear is also battling through one-time issues, including a fire at its Poland facility that is expected to shave about $15 million from operating income.
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Why Goodyear Stock Is Deflating Today