Shares of Goodyear Tire & Rubber Co. pulled a sharp U-turn to sink deep into negative territory Friday, after the tire maker followed a strong earnings report with a disappointing full-year outlook for free cash flow.
The stock initially jumped in premarket trading after the company
GT,
reported a fourth-quarter profit that rose well above expectations. It peaked with a gain of as much as 7.5% about 10 minutes before the open bell, then the bottom fell out.
Chief Financial Officer Darren Wells said about 28 minutes into the post-earnings conference call with analysts, which was scheduled to kick off at 9 a.m. Eastern, that the company was “targeting 2022 free cash flow around breakeven.” That compares with 2021 cash flow from operating activities of $1.06 billion.
Wells said the FCF guidance takes into account…
