Goodyear Tire Stock Tumbles After-Hours As Q1 Print Disappoints: Retail Turns Bearish Amid Heavy Buzz

Shares of Goodyear Tire & Rubber Co (GT) drew significant attention from retail investors after the company released its first-quarter earnings, despite the results falling short of Wall Street’s revenue expectations.

Goodyear posted Q1 revenue of $4.3 billion, below the $4.41 billion consensus estimate. 

Tire unit volumes declined 4.7% to 38.5 million units, while segment operating income fell to $195 million, down $52 million from the same period last year, weighed by higher raw material and inflationary costs.

Goodyear shares closed up 0.5% at $11.01 on Wednesday but slipped 3.45% to $10.63 in after-hours trading.

The company swung to a net profit of $115 million, or $0.40 per diluted share, compared to a net loss of $57 million, or $0.20 per share, in the prior year. 

However, Goodyear posted an adjusted loss of $0.04 per share for the first quarter, wider than the $0.03 loss expected by analysts polled by FactSet.

CEO Mark Stewart said the company delivered its “strongest quarter to date” in terms of transformation benefits, citing cost reductions, improved margins, and portfolio optimization.

“With the sale of the Dunlop brand, we are further optimizing our portfolio while strengthening our balance sheet — a critical component of our transformation plan,” Stewart said.

The Dunlop brand sale to Sumitomo Rubber Industries generated $735 million in gross proceeds, while the earlier divestiture of the Off-the-Road (OTR) tire business brought in $905 million. 

Stewart reaffirmed Goodyear’s full-year targets, including a 10% segment operating margin and a net leverage ratio of 2.0x–2.5x by Q4 2025.

Despite the upbeat financial turnaround, investor sentiment on Stocktwits skewed ‘bearish’ amid ‘high’ message volume. 

One user remarked the results were “not good at all” and suggested the stock could drift back to $10, noting it has traded in an $8–$12 band for years. 

Another poster called for aggressively shorting the stock following the results.

According to Koyfin estimates, the stock holds an average analyst rating of 3.75 on 5. Of 8 analysts covering Goodyear, 3 rate it ‘Buy’, 5 ‘Hold’, and none recommend ‘Sell’ or ‘Strong Sell’.

Shares of Goodyear Tire & Rubber have risen nearly 26% so far this year.

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