Piper Jaffray Comments On Forward Air Following Earnings Release

Yesterday after market close, Forward Air FWRD reported 4Q10 EPS of $0.41, $0.04 above both Consensus and Piper Jaffray's estimate of $0.37. Ex a lower than expected tax rate, adjusted 4Q10 EPS was $0.38 - a one penny beat. Operating upside to expectations was driven mainly by core Forward Air operations albeit Pool Distribution, which swung to profitability during 4Q10, was modestly better than Piper's low end expectations. Management appears to be slowly improving the cost structure at Pool and believes the division will be a 2011 EPS contributor, versus the past two years as a detractor, moving forward. Piper Jaffray maintains a Neutral rating and $31 PT on FWRD FWRD closed Monday at $28.77