Why Con-way Drove Higher

Before you go, we thought you'd like these...
Before you go close icon

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 and logistics company Con-way (NYS: CNW) are burning rubber, up 14% as of this writing, following a better-than-anticipated first-quarter earnings report.

So what: For the quarter, Con-way reported a more than tripling in its net income to $0.46 on a 9.6% jump in revenue to $1.37 billion. These results easily ran over Wall Street's expectations for $0.35 in profit on revenue of $1.35 billion. Con-way attributed its strong results to a significantly lower effective tax rate, as well as strong growth in its truckload, logistics, and freight segments.


Now what: So much for rising fuel costs digging into trucking companies' bottom lines. All three of Con-way's business segments are running leaner and boosting efficiency, which resulted in part of this quarter's huge beat. It also would be wrong if we overlooked the huge impact that a much lower tax rate had on Con-way's earnings. All in all, this was a solid quarter and it's actually one that long-term investors can build confidence around. It's not my favorite transportation company by any means, but it's on my radar after this report.

Craving more input? Start by adding Con-way to your free and personalized watchlist so you can keep up on the latest news with the company.

At the time this article was published Fool contributor Sean Williams has no material interest in any companies mentioned in this article. You can follow him on CAPS under the screen name TMFUltraLong, track every pick he makes under the screen name TrackUltraLong, and check him out on Twitter, where he goes by the handle @TMFUltraLong.Try any of our Foolish newsletter services free for 30 days. We Fools don't 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.

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story

Want more news like this?

Sign up for Finance Report by AOL and get everything from business news to personal finance tips delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.

From Our Partners