Goodyear Tire (NASDAQ:GT) shares rose more than 3% intra-day today after the company released its third-quarter financial results, revealing earnings per share (EPS) of $0.36, which surpassed the consensus expectations of $0.19. However, the company’s revenue of $5.14 billion fell short of the projected consensus of $5.3 billion.
Looking forward, Goodyear expects its fourth-quarter performance to be affected by an unforeseen event — a fire at one of its manufacturing plants in Poland, which is estimated to incur a one-time expense of around $20 million. Despite this setback, the company is optimistic about the fourth quarter, forecasting it to have the highest volume of the year and continuing to anticipate sequential growth in margins.
This optimism is based on the strong price/mix results stemming from Goodyear’s strategic emphasis on the more profitable, premium segments of the tire market.