Goodyear Tire Q2 adjusted EPS misses estimates on disruption due to shifts in global trade
Overview
Goodyear Q2 2025 net sales of $4.5 bln beat analyst expectations
Adjusted EPS for Q2 2025 missed analyst estimates, recording a loss of $0.17
Adjusted net income for Q2 2025 missed expectations, with a loss of $48 mln
Outlook
Goodyear expects market conditions to stabilize in coming quarters
Company aims to exceed Goodyear Forward cost savings and asset sale goals
Goodyear anticipates completing chemical business sale by late 2025
Company plans to use chemical sale proceeds to reduce leverage
Result Drivers
GOODYEAR FORWARD BENEFITS - Company achieved $195 mln in segment operating income benefits from Goodyear Forward plan
RAW MATERIAL COSTS - Higher raw material costs led to a $152 mln decline in segment operating income after adjusting for the sale of the OTR tire business
INDUSTRY DISRUPTION - CEO Mark Stewart cites industry disruption from global trade shifts and low-cost imports impacting consumer and commercial businesses
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Sales | Beat | $4.50 bln | $4.42 bln (7 Analysts) |
Q2 Adjusted EPS | Miss | -$0.17 | $0.07 (7 Analysts) |
Q2 Adjusted Net Income | Miss | -$48 mln | $5.17 mln (4 Analysts) |
Q2 Net Income | $254 mln | ||
Q2 Segment Operating Income | $159 mln |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 8 "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the tires & rubber products peer group is "buy"
Wall Street's median 12-month price target for Goodyear Tire & Rubber Co is $15.00, about 33.7% above its August 6 closing price of $9.94
The stock recently traded at 6 times the next 12-month earnings vs. a P/E of 7 three months ago
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