NEW YORK (TheStreet) -- Shares of Goodyear Tire & Rubber (GT) - Get Goodyear Tire & Rubber Company Report were gaining 5.6% to $23.14 Wednesday after beating analysts' estimates for earnings in the third quarter.
The tire producer reported earnings of 87 cents a share for the quarter, beating the Capital IQ Consensus Estimate of 70 cents a share by 17 cents. Revenue fell 6.9% year over year to $4.66 billion for the quarter, below analysts' estimates of $4.93 billion.
Goodyear said that original equipment unit volume fell 3% year over year in the quarter, mostly due to reduced vehicle production in Brazil. Replacement tire shipments fell 1% in the quarter due to a decline in North America as a result of "significant stockpiling of imported low-end tires in advance of potential tariffs being imposed in 2015," according to the company.
TheStreet Ratings team rates GOODYEAR TIRE & RUBBER CO as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate GOODYEAR TIRE & RUBBER CO (GT) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its growth in earnings per share, increase in net income and notable return on equity. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated."
You can view the full analysis from the report here: GT Ratings Report