Topic: Growth Stocks

Stock Pickers Digest Hotline – Friday, October 31, 2014

Article Excerpt

GOODYEAR TIRE & RUBBER, $24.23, symbol GT on New York, rose over 18% this week after reporting sharply higher earnings in the latest quarter. In the three months ended September 30, 2014, Goodyear’s revenue fell 6.9%, to $4.7 billion from $5.0 billion a year earlier. The company sold 2% fewer tires worldwide, including a 4% drop in North America as car dealers stocked up on cheaper Chinese-made tires ahead of an expected U.S. tariff aimed at limiting sales of imported tires for less than the cost of production. But even with the lower revenue, earnings, excluding one-time items, jumped 39.9%, to $242.0 million, or $0.87 a share. That was well ahead of the consensus estimate of $0.70. A year earlier, the company earned $173.0 million, or $0.68 a share. Goodyear’s costs, including for rubber and other raw materials, continue to fall. As well, it now has a favourable labour contract with the United Steelworkers. This four-year deal, which covers about 8,000 employees at…