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
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.
