Why Goodyear Tire Dropped 13% After Topping Q3 Estimates
Shares of Goodyear Tire & Rubber (NASDAQ: GT), one of the world's largest tire companies, are down 13% Friday afternoon despite the company beating top- and bottom-line estimates in its third-quarter earnings release today.
Despite the stock price decline today, which is partly due to the broader market sell-off as COVID-19 concerns continue to mount overseas and in the U.S., Goodyear posted a solid third quarter. While its third-quarter total unit volume was down 9% compared with the prior year, the company noted improving volume throughout the quarter, significantly better-than-expected working capital, strong net cost savings, and total liquidity of roughly $4.2 billion. Revenue checked in at $3.46 billion, which was well ahead of the $3.29 billion analysts had forecast, and adjusted earnings per share of $0.10 easily thumped analysts' estimates calling for a loss of $0.06 per share.
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Source Fool.com
