Con-way Earnings: Here’s Why the Stock is Rising Now

Con-way Inc. (NYSE:CNW) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are up 0.14%.

Con-way Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 1.52% to $0.67 in the quarter versus EPS of $0.66 in the year-earlier quarter.

Revenue: Decreased 4.5% to $1.38 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Con-way Inc. reported adjusted EPS income of $0.67 per share. By that measure, the company beat the mean analyst estimate of $0.59. It missed the average revenue estimate of $1.45 billion.

Quoting Management: “Con-way Freight, our less-than-truckload company and largest business unit, is executing well against its key strategic initiatives of lane-based pricing and line-haul optimization,” commented Stotlar. “Improved yield and network efficiencies overcame a slight decline in tonnage to deliver increased operating income in the quarter. We are on track with our initiatives and continue to expect year-over-year margin improvement in the second half of the year.”

Key Stats (on next page)…

Revenue decreased 0% from $0 in the previous quarter. EPS increased 252.63% from $0.19 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.66 to a profit $0.63. For the current year, the average estimate has moved down from a profit of $2.04 to a profit of $1.93 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)