Goodyear Tire’s Strong Q3 Showing Shifts Retail Sentiment Into Overdrive

Shares of Goodyear Tire & Rubber Co. ($GT) surged over 13% on Wednesday afternoon to three-month highs, buoying retail sentiment after the company reported strong third-quarter results. 

Goodyear posted a loss of $34 million, or $0.12 per share, an improvement from last year’s $89 million loss, or $0.31 per share. 

Adjusted earnings reached $0.37 per share, surpassing analysts’ expectation of $0.22 per share according to FactSet, though revenue dipped 6.2% to $4.82 billion, missing the forecasted $4.96 billion.

The company attributed its recent success to the ongoing “Goodyear Forward” transformation plan, with CEO Mark Stewart noting that it achieved four consecutive quarters of segment operating margin expansion. 

With these results, Goodyear raised its gross benefit target from Goodyear Forward to $1.5 billion by 2025, up from $1.3 billion, while also increasing its 2024 guidance to $450 million in gross benefits. It anticipates another $750 million in year-over-year gains in 2025. 

The company reaffirmed its leverage target of 2.0x-2.5x by the end of 2025 and expects over $2 billion in proceeds from portfolio optimization.

Following the earnings release, Goodyear was among the top 10 trending tickers on Stocktwits on Tuesday afternoon, with sentiment going deeper into ‘extremely bullish’ (94/100) territory amid a spike in message volume. 

Retail investors shared technical insights, with some targeting a potential $10-$11 price range, while others noted that short sellers were feeling the squeeze.

Still, Goodyear’s stock remains down over 35% year-to-date.

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