By midmorning, shares had gained 6.4% to $25.71.
In the three months to December, the tire giant recorded better-than-expected earnings of 74 cents a share, 12 cents higher than analysts surveyed by Thomson Reuters had expected.
Net income more than doubled from the year-ago quarter to $202 million, due in part to increased profitability in its North America business.
"Our outstanding fourth quarter and full-year earnings confirm that our strategy is working and demonstrate Goodyear's ability to deliver sustainable earnings growth and strong free cash flow," said CEO Richard Kramer in a statement.
Earnings which exceeded expectations overshadowed revenue which missed analyst targets. Quarterly sales totaled $4.8 billion, 5% lower than a year earlier, and fell short of consensus by $160 million.
Though tire sales remained strong, lower sales in other parts of its business impacted revenue, particularly third-party chemical sales in North America and unfavorable forex conversions.
"As industry volumes recover, we continue to see mixed growth rates globally, but there is strong growth in the high-value-added segments we are targeting," added Kramer.
Management reiterated its 2014 to 2016 financial targets, including annual segment operating income growth between 10% and 15%. Current-year unit volumes are expected to increase 2% to 3%.
TheStreet Ratings team rates GOODYEAR TIRE & RUBBER CO as a Buy with a ratings score of B. The team has this to say about their recommendation: