Topic: How To Invest

Stock Pickers Digest Hotline – Friday, July 29, 2016

Article Excerpt

GOODYEAR TIRE & RUBBER CO., $28.67, symbol GT on Nasdaq, is one of the world’s largest tire makers, with 49 plants in 22 countries. The stock gained 6% this week after the company reported better-than-expected second quarter profits. In the three months ended June 30, 2016, it earned $314 million, excluding one-time items. That’s a jump of 37.1%, from $229 million a year earlier. Earnings per share rose at the faster rate of 38.1%, to $1.16 from $0.84, on fewer shares outstanding. That beat the consensus estimate of $1.03. The company’s gains are mainly due to lower income taxes and higher sales of its more-expensive, premium tires. Revenue, however, fell 7.0%, to $3.9 billion from $4.2 billion. That excludes any sales in the troubled Venezuela market and reflects the sale of Goodyear’s motorcycle tire business (North America). Generally, the high U.S. dollar also hurt the contribution of the company’s overseas operations. Excluding…