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Goodyear Tire stock jumps after profit, sales beat expectation as COVID-19 impact moderated

Economy, Finance

Shares of Goodyear Tire & Rubber Co. jumped 3.9% in premarket trading Friday, after the tire seller reported first-quarter profit and sales that beat Wall Street estimates, as the COVID-19 pandemic’s impact on industry demand “moderated.” The company swung to net income of $12 million, or 5 cents a share, from a loss of $619 million, or $2.65 a share, in the year-ago period. Excluding nonrecurring items, such as rationalization charges associated with a plan to cut expenses, modernization costs and a $23 million impact related to Winter Storm Uri, adjusted earnings per share came to 43 cents, above the FactSet consensus of 12 cents. Sales grew 14.9% to $3.51 billion, beating the FactSet consensus of $3.39 billion, as tire unit volumes rose 12%, with replacement tire volume increased 14%. “Our consumer replacement business delivered outstanding results,” said Chief Executive Richard Kramer. “By leveraging improved distribution and new products, we outperformed the industry while expanding margins.” Goodyear’s stock has soared 68.2% over the past three months, while the S&P 500 has advanced 13.4%.

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