Goodyear stock soars after big profit, as record industry freight volume leads to ‘robust’ demand for tires

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Shares of Goodyear Tire & Rubber Co. GT, +12.54% soared 9.1% toward a three-year high in premarket trading Friday, after the tire maker reported a big third-quarter profit beat, citing improved pricing and as the transportation industry moved record freight volume. The company swung to net income of $132 million, or 46 cents a share, from a loss of $2 million, or a penny a share, in the year-ago period. Excluding nonrecurring items, including amortization related to Cooper Tire inventory step-up adjustments, adjusted EPS rose to 72 cents from 10 cents, well above the FactSet consensus of 28 cents. Sales grew 42.4% to $4.93 billion, above the FactSet consensus of $4.78 billion, amid “robust demand” from the company’s largest commercial customers. Gross margin improved to 21.1% from 19.9%. “We continued to capitalize on favorable industry trends in our key replacement markets,” said Chief Executive Richard Kramer. “Overall consumer replacement demand remains robust, and our business continues to have momentum.” The stock has rocketed 96.6% year to date through Thursday, while the S&P 500 SPX, +0.37% has advanced 24.6%.

This article was originally published by Marketwatch.com. Read the original article here.

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