How did GT's Q4 earnings surprise investors?

The Goodyear Tire & Rubber Company (GT) delivered a positive Q4 earnings surprise, with earnings per share (EPS) exceeding expectations, driven by strategic initiatives and improved operating income.

1. **Earnings Per Share (EPS) Surprise**: GT reported an EPS of $0.26 for Q4 2024, surpassing the estimated EPS of $0.18. This positive surprise reflects improved profitability for the period.

2. **Net Income and Adjusted Net Income**: The company reported a net income of $76 million for Q4 2024, marking a significant turnaround from a net loss of $291 million in the same quarter of the previous year. Adjusted net income was also robust at $114 million, up from $135 million in the prior year's quarter.
3. **Revenue and Segment Operating Income**: Despite a 4.8% year-over-year decrease in net sales to $5.116 billion, GT's segment operating income increased by 62.3% to $383 million. The full-year revenue for 2024 was $18.9 billion, slightly above the estimated $18.831 billion.
4. **Cash Flows and Debt**: GT's fourth quarter cash flows from operating activities reached $1.3 billion, and the company successfully reduced its total debt to $7.6 billion.
5. **Strategic Transformation Impact**: The successful implementation of the Goodyear Forward transformation plan contributed $195 million in benefits, enhancing segment operating income and margin growth.

In conclusion, GT's Q4 earnings exceeded expectations due to strategic initiatives, improved operating income, and effective cost management. These factors collectively contributed to a robust financial performance, reflecting the company's strategic direction and operational efficiency.