Why Con-way's Shares Popped
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 logistics company Con-way jumped 10% today, after releasing earnings.
So what: Revenue was up 3.4%, to $1.36 billion, and net income fell 48.6%, to $11.8 million, or $0.21 per share. The revenue number was in line with estimates, but earnings per share were $0.02 short of estimates.
Now what: It's often the outlook that drives a stock higher, and management seems optimistic about 2013, which investors are betting on today. Volumes are picking up, and the company's margins are expected to expand next year, so there may be upside operationally. Still, after a slight earnings miss and low revenue growth, I don't think there was enough positive outlook to warrant the pop today. I'm staying out for now, and we'll see if the company can improve the bottom line next quarter.
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The article Why Con-way's Shares Popped originally appeared on Fool.com.Fool contributor Travis Hoium has no position in any stocks mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings, or follow his CAPS picks at TMFFlushDraw. The Motley Fool has no position in any of the stocks mentioned. 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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