The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Con-way missed estimates on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue expanded slightly and GAAP earnings per share contracted.
Margins shrank across the board.
Con-way reported revenue of $1.40 billion. The 18 analysts polled by S&P Capital IQ anticipated sales of $1.44 billion on the same basis. GAAP reported sales were 2.0% higher than the prior-year quarter's $1.38 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.45. The 20 earnings estimates compiled by S&P Capital IQ predicted $0.59 per share. GAAP EPS of $0.45 for Q3 were 13% lower than the prior-year quarter's $0.52 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 20.4%, 50 basis points worse than the prior-year quarter. Operating margin was 3.9%, 50 basis points worse than the prior-year quarter. Net margin was 1.8%, 30 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $1.38 billion. On the bottom line, the average EPS estimate is $0.35.
Next year's average estimate for revenue is $5.62 billion. The average EPS estimate is $1.90.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 93 members out of 116 rating the stock outperform, and 23 members rating it underperform. Among 34 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 25 give Con-way a green thumbs-up, and nine give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Con-way is outperform, with an average price target of $37.50.
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