Goodyear Tire & Rubber Co (NASDAQ:GT) stock was took a hit on Wednesday following the release of its earnings report for the first quarter of the year.
Goodyear Tire & Rubber Co notes that net income reported in the first quarter of 2018 was $75 million. This is a huge drop from the company’s net income of $166 million that was reported in the same quarter of the previous year.
Operating income reported by Goodyear Tire & Rubber Co for the first quarter of the year was $281 million. This is also down from the tire company’s operating income of $390 million reported during the same time last year.
The blow to Goodyear Tire & Rubber Co stock comes as it deals with higher costs for raw materials to make its tires. The company says this is one of the factors that caused its operating income for the first quarter of the year to drop.
During the first quarter of 2018, Goodyear Tire & Rubber Co reported revenue of $3.83 billion. This is better than its revenue of $3.70 million that was reported in the first quarter of 2017. It also just beat out Wall Street’s revenue estimate of $3.82 billion for the quarter.
Earnings per share reported by Goodyear Tire & Rubber Co for for the first quarter of the year was 50 cents. This is down from its earnings per share of 74 cents from the same period of the year prior. However, it still beat out analysts’ earnings per share estimate of 46 cents for the quarter, but wasn’t enough to help Goodyear Tire & Rubber Co stock.
GT stock was down 4% as of noon Wednesday.
As of this writing, William White did not hold a position in any of the aforementioned securities.