Goodyear Tire's Stock Tumbles After Sales Miss, Outlook Cut

By Markets MarketWatch Pulse

Shares of Goodyear Tire & Rubber Co. tumbled 8.7% in premarket trade Friday, after the tire maker missed third-quarter sales expectations and cut its profit outlook. Earnings for the quarter ended Sept. 30 rose to $317 million, or $1.19 a share, from $1.01 million or 99 cents a share. Excluding non-recurring items, adjusted earnings per share came to $1.17, above the FactSet consensus of $1.16. Revenue fell to $3.85 billion from $4.18 billion, below the FactSet consensus of $3.97 billion. The company cut its 2016 total segment operating income outlook to $2.000 billion from $2.025 billion from $2.1 billion to $2.2 billion. "Our revised 2016 outlook reflects recent volatility impacting our U.S. commercial truck tire business," said chief executive Richard Kramer. "This near-term headwind will not have an impact on our value proposition or our ability to execute on our long-term plan." The stock has lost 5.2% year to date through Thursday, while the S&P 500 has gained 4.4%.

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