Con-way Shares Plunged: What You Need to Know
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.
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