CSFB Cuts Estimates for Yellow Roadway
CSFB cut its estimates and price target on Yellow Roadway (YELL ) Friday, citing the transportation service company's earnings guidance reduction.
Yellow Roadway recently said it expects third-quarter adjusted earnings per share of between $1.40 and $1.45 compared with previous guidance of $1.60 to $1.65.
Analyst Jason Seidl thinks that while roughly 5 cents of earnings per share reduction is attributable to Hurricane Katrina, the bulk of the company's downward guidance revision stems from weakness at its Roadway unit.
Seidl cut his third-quarter earnings per share estimate to $1.45 from $1.60, his fourth quarter estimate to $1.34 from $1.46, his 2005 estimate to $5.10 from $5.40, and his 2006 estimate to $5.95 from $6.40.
Although he kept his neutral investment rating on the stock, his price target was reduced to $53.50 from $58.