Goodyear (GT) Reports Q2 Loss, Lags Revenue Estimates

Financial Performance - Goodyear reported a quarterly loss of $0.17 per share, missing the Zacks Consensus Estimate of $0.37, and compared to earnings of $0.19 per share a year ago, representing an earnings surprise of -145.95% [1] - The company posted revenues of $4.47 billion for the quarter ended June 2025, missing the Zacks Consensus Estimate by 0.83%, and down from $4.57 billion year-over-year [2] - Over the last four quarters, Goodyear has surpassed consensus EPS estimates two times and topped consensus revenue estimates just once [2] Stock Performance and Outlook - Goodyear shares have increased approximately 10.4% since the beginning of the year, outperforming the S&P 500's gain of 7.9% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the coming quarter is $0.50 on revenues of $4.82 billion, and for the current fiscal year, it is $1.31 on revenues of $18.57 billion [7] Industry Context - The Rubber - Tires industry, to which Goodyear belongs, is currently ranked in the bottom 6% of over 250 Zacks industries, indicating potential challenges ahead [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact Goodyear's stock performance [5] - The unfavorable trend in estimate revisions prior to the earnings release has resulted in a Zacks Rank 5 (Strong Sell) for Goodyear, suggesting expected underperformance in the near future [6]