Goodyear Tire & Rubber Co. reported stronger-than-expected Q1 earnings but warned of persistent cost pressures weighing on margins.
Goodyear Tire & Rubber Co. (GT) shares fell 2% in early trading despite posting first-quarter earnings that exceeded analyst estimates. The decline followed warnings of ongoing cost pressures, including higher raw material and logistics expenses, which offset revenue gains.
The company reported adjusted earnings of $0.45 per share, topping consensus estimates of $0.38. Revenue rose 3% year-over-year to $5.1 billion, driven by stronger demand in the replacement tire segment. However, management highlighted inflationary challenges as a headwind for profitability.
Investors focused on the cost outlook, leading to a modest pullback in the stock despite the earnings beat.