AKRON, Ohio (AP) — Shares of Goodyear Tire & Rubber Co. jumped almost 4 percent Wednesday after it reported improved second quarter earnings, thanks to lower income tax expenses and increased demand for its higher-end tires.
The tire maker said it earned $202 million, or 75 cents per share, up from $192 million, or 70 cents per share, a year earlier. Earnings adjusted for asset impairment costs and other items came to $1.16 per share.
The results beat Wall Street expectations. The average estimate of five analysts surveyed by Zacks Investment Research was for earnings of $1.04 per share.
The company posted revenue of $3.88 billion in the period, down from $4.2 billion a year ago but matching analysts’ expectations. The company said the drop was due to deconsolidation of its Venezuela subsidiary, the sale of its North America motorcycle tire business and a strong dollar.
Company executives said their previous forecasts for 2016 remain unchanged.
Goodyear shares rose $1.07, or 3.8 percent, to $28.98 in midday trading. Its shares are about even with where they traded a year ago,
The company’s shares have fallen about 11 percent since the beginning of the year, while the Standard & Poor’s 500 index has risen 6 percent. Goodyear’s share price is virtually the same as it was 12 months ago.
Elements of this story were generated by Automated Insights (http://automatedinsights.com/ap) using data from Zacks Investment Research. Access a Zacks stock report on GT at http://www.zacks.com/ap/GT
Keywords: Goodyear, Earnings Report, Priority Earnings