Goodyear Gains Most Since October as Profit Beats EstimatesMark Clothier
Goodyear Tire & Rubber Co. rose the most in six months after the largest U.S. tiremaker reported profit that topped analysts’ estimates as earnings in North America helped overcome a drop in its European region.
Profit excluding some items was 54 cents a share, the Akron, Ohio-based company said Wednesday in a statement. The average of nine estimates compiled by Bloomberg was 44 cents.
“We expect a positive reaction to this set of solid results,” Ryan Brinkman, a JPMorgan Chase & Co. analyst who rates the stock overweight, said in a research note. “In our conversations with investors, there had been some fear the company could miss 1Q earnings on softer volumes.”
Goodyear rose 4.2 percent to $28.34 at the close in New York, the biggest daily advance since Oct. 29. The shares had dropped 4.8 percent this year through Tuesday, as the Standard & Poor’s 500 Index gained 2.7 percent.
The company said first-quarter revenue fell 10 percent to $4.02 billion, including a $393 million reduction because of currency exchange rates. That trailed the $4.09 billion average estimate. In North America, operating income rose 27 percent to $198 million, while earnings in Goodyear’s Europe, Middle East and Africa region slid 34 percent to $73 million.