Wells Fargo Raises Price Valuation and Estimates on Con-way (CNW), Positive Market Trends Combined With Strong Performance from Management
Tweet
Share
E-mailGet Alerts CNW Hot Sheet
Price: $47.55 --0%
Rating Summary:
5 Buy, 15 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
5 Buy, 15 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Join SI Premium – FREE
Wells Fargo is reiterating its Market Perform rating on shares of Con-way (NYSE: CNW), but is raising its valuation range from $33-$34 to $41-$43 on strong Q1 results.
The company released its Q1 results ahead of expectations with revenue of $1.245 billion and PES of $0.12, the firm was anticipating $1.204 billion in revenue and $0.10 in EPS. Operating income for the quarter was $36.7 million while Wells Fargo was forecasting that it would only be $24 million. Wells notes that each business unit performed better than it expected, with the LTL Freight segment showing the most upside relative to its previous expectations.
As a result of solid Q1 earnings, the firm is raising its FY11 and FY12 EPS estimates from $1.34 and $2.28 to $1.69 and $2.70.
An analyst at Wells Fargo states, "While the stock’s action before the earnings release could partly be attributed to improving industry conditions, we think the action following the earnings report relates to investors' thoughts on CNW's potential to reduce the gap between recent results and prior peak margins. In our view, CNW will achieve continued margin improvement but a return to prior peak margins in the core Freight segment is unlikely over our investment horizon."
For more ratings news on Con-way click here and for the rating history of Con-way click here.
Shares of Con-way closed at $39.34 yesterday.
The company released its Q1 results ahead of expectations with revenue of $1.245 billion and PES of $0.12, the firm was anticipating $1.204 billion in revenue and $0.10 in EPS. Operating income for the quarter was $36.7 million while Wells Fargo was forecasting that it would only be $24 million. Wells notes that each business unit performed better than it expected, with the LTL Freight segment showing the most upside relative to its previous expectations.
As a result of solid Q1 earnings, the firm is raising its FY11 and FY12 EPS estimates from $1.34 and $2.28 to $1.69 and $2.70.
An analyst at Wells Fargo states, "While the stock’s action before the earnings release could partly be attributed to improving industry conditions, we think the action following the earnings report relates to investors' thoughts on CNW's potential to reduce the gap between recent results and prior peak margins. In our view, CNW will achieve continued margin improvement but a return to prior peak margins in the core Freight segment is unlikely over our investment horizon."
For more ratings news on Con-way click here and for the rating history of Con-way click here.
Shares of Con-way closed at $39.34 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Tesla plans 'flying' Roadster stunt at SpaceX Texas site as early as August
- Movano (MOVE) Misses Q2 EPS by 195c
- Deere (DE) PT Lowered to $570 at JPMorgan Ahead of Earnings
Create E-mail Alert Related Categories
Analyst CommentsRelated Entities
Earnings, Wells FargoSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
