The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Con-way met expectations on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP earnings per share expanded significantly.
Gross margins dropped, operating margins expanded, net margins increased.
Con-way recorded revenue of $1.32 billion. The 15 analysts polled by S&P Capital IQ predicted net sales of $1.31 billion. Sales were 8.7% higher than the prior-year quarter's $1.21 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
Non-GAAP EPS came in at $0.26. The 20 earnings estimates compiled by S&P Capital IQ averaged $0.35 per share on the same basis. GAAP EPS of $0.41 for Q4 were much higher than the prior-year quarter's $0.04 per share.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 3.8%, 1,290 basis points worse than the prior-year quarter. Operating margin was 3.8%, 230 basis points better than the prior-year quarter. Net margin was 1.7%, 150 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $1.33 billion. On the bottom line, the average EPS estimate is $0.36.
Next year's average estimate for revenue is $5.59 billion. The average EPS estimate is $2.20.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 88 members rating the stock outperform and 22 members rating it underperform. Among 35 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 26 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 $35.53.
Over the decades, small-cap stocks, like Con-way, have provided market-beating returns, provided they're value priced and have solid businesses. Read about a pair of companies with a lock on their markets in "Too Small to Fail: Two Small Caps the Government Won't Let Go Broke." Click here for instant access to this free report.
- Add Con-way to My Watchlist.
Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. 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.