What: Shares of tire maker Goodyear Tire & Rubber (NYSE: GT ) fell 10% today, after reporting third quarter earnings.
So what: Revenue fell 13% in the quarter, to $5.3 billion, as volume declined 12%. Net income fell 30%, to $117 million, or $0.41 per share. Adjusted earnings per share were $0.53, which was less than the $0.59 analysts expected.
Now what: Challenges in Europe and an oversupply in inventory were the cause of the weak quarter. Still, the company was able to make a substantial profit in a weak-demand environment, which is a positive long term. Even after the weak quarter ,shares are trading at 7.5 times trailing earnings, which isn't a bad price if conditions in Europe improve. I think there's enough upside and proof that Goodyear can control costs to think the stock has room to move higher.
Interested in more info on Goodyear? Add it to your watchlist by clicking here.