Goodyear Tire & Rubber Co. gained the most since September in intraday New York trading after the largest U.S. tiremaker narrowed its first-quarter loss and beat analysts’ estimates.
Goodyear closed at $13.82, a decline of 23 cents, or 1.6 percent, in New York Stock Exchange composite trading. Earlier, the shares advanced as much as 8.7 percent, the biggest increase since Sept. 14. They have fallen 2 percent this year.
The net loss shrank to $47 million, or 19 cents a share, from $333 million, or $1.38, a year earlier, the Akron, Ohio- based company said in a statement today. Goodyear said that excluding some costs and gains, it had a profit of 18 cents a share. The average of 7 analysts’ estimates compiled by Bloomberg was for an adjusted loss of 3 cents.
“Given low expectations, we expect a positive reaction to shares of Goodyear,” Himanshu Patel, a JPMorgan Chase & Co. analyst in New York, wrote in a note to investors. He cited a 14 percent surge in global tire volumes and said the results confirm “that there are no more major skeletons lingering.”
Sales rose 21 percent to $4.27 billion. The average of 3 analysts’ estimates was for $4.03 billion.
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