Con-way Shares Plunged: What You Need to Know

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Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of transportation company Con-way (NYS: CNW) fell 10% today after the company released disappointing earnings.

So what: Fourth-quarter revenue was $1.32 billion, just edging the $1.31 billion analysts had expected. But the bottom line disappointed with earnings of $0.26 per share, below the $0.36 per share in earnings that analysts expected.

Now what: The company also reported a $10 million gain from a dispute with Chic Logistics, which helped non-adjusted earnings. Truckload operation revenue rose 8.8%, so despite cost pressure the company is performing well on the top line. The earnings miss isn't good, but shares trade at just 11 times forward earnings so there may be some value beginning to develop in shares right now.

Interested in more info on Con-way? Add it to your watchlist byclicking here.

At the time this article was published Fool contributor Travis Hoium does not have a position in any company mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings or follow his CAPS picks at TMFFlushDraw.Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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