Bank of America Reiterates On Con-way Inc. After Release Of Earnings Report

Bank of America analyst, Ken Hoexter, released a note reiterates Con-way Inc.’s CNW neutral rating and raised its price target to $56 from $54 in reaction to their recently released earnings report.

Hoexter states, “Con-way reported 2Q14 EPS of $0.91, a 34% increase year-over-year, and ahead of our $0.76 and consensus’ $0.75 estimates”. Total revenue was $1.49 billion, up 8 percent and $46 million above Hoexter’s target.

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Con-way benefited from a strong demand in its Truckload and Freight segments and increased pricing. Menlo Logistics significantly surpassed Bank of America’s top-line target, however, the main reason for such a successful quarter was cost management.

Con-way’s board recently approved a 50 percent increase in the dividends, as well as a $150 million share repurchase program. Hoexter sees this move as an indicator of Con-way in its ongoing turnaround.

Hoexter raises the price target, but chooses to maintain the neutral rating stating that, “[Con-way] remains near the upper end of its historical trading range”.

Con-way Inc. opened up 4.6 percent at $49.87 on Thursday morning.