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Swift Jumps After Results

We maintain our Two rating on the stock.
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Swift Transportation (SWFT) is trading more than 6% higher today after management posted solid quarterly results overnight. This Alert is a preliminary review of the company’s numbers and we’re not recommending any trades for the model portfolio.

Swift earned $0.39 a share in the third quarter, which was $0.04 ahead of the consensus analyst estimate. Revenue grew 4% from the previous year to $1.07 billion and fell just short of expectations.

The profit upside was driven by non-operating items, such as a lower tax rate and used equipment sales. But core productivity trends also appear strong and management offered 2015 earnings guidance of $1.62 to $1.74 a share, representing 25-35% growth.Ahead of the conference call at 11 a.m. ET, we maintain our Two rating on the stock, which is currently changing hands around $23.77. We’ll circle back after the call, if there are any material updates.

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