J.P. Morgan Raising EPS On Con-Way

According to J.P. Morgan, Con-way (NYSE: CNW) 1Q11 was sharply above expectations as the Freight (LTL) division operating margin improved 300 bp y/y.

J.P. Morgan said that lower healthcare costs sequentially and y/y provided a boost but even if healthcare costs were flat, CNW's EPS would have been significantly above expectations. “We are raising our EPS estimates and we expect a meaningful move up in CNW stock on Thursday but we think that a very aggressive EPS progression in '11 and '12 is still required to support significant medium term upside.”

Con-way closed yesterday at $37.60.