AKRON, Ohio - Goodyear Tire & Rubber Company (NASDAQ:GT) shares gained 2.8% in after-hours trading Monday after the tire maker reported third quarter earnings that beat analyst expectations and increased targets for its transformation plan.
Goodyear posted adjusted earnings per share of $0.37, surpassing the analyst consensus estimate of $0.22. Revenue came in at $4.82 billion, below the $4.96 billion analysts had projected.
The company reported a net loss of $34 million, or $0.12 per share, compared to a loss of $89 million, or $0.31 per share, in the same quarter last year. Adjusted net income was $105 million.
Segment operating income rose to $347 million from $336 million a year ago, with segment operating margin expanding 70 basis points YoY to 7.2%.
"As a result of the consistent and strong execution of our Goodyear Forward transformation plan, we successfully achieved four consecutive quarters of segment operating margin expansion," said CEO Mark Stewart.
Goodyear increased its target for gross run-rate gains from the transformation plan to $1.5 billion by the end of 2025, up $200 million from the original goal. The company now expects $450 million in gross benefits from the plan in 2024.
Third quarter tire unit volumes declined 8.3% YoY to 42.5 million. Revenue fell 6.2% compared to the prior year period.
The company maintained its target of achieving a 10% segment operating income margin and leverage of 2.0x to 2.5x by the fourth quarter of 2025.
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