Why YRC Worldwide's Shares Dropped
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of transportation service company YRC Worldwide fell 23% today after the company released earnings.
So what: Second-quarter revenue fell slightly to $1.24 billion and fell short of the $1.26 billion estimate from Wall Street. The bottom line was the big concern, though, as the company lost $1.72 per share, nearly double the expected $0.88 loss.
Now what: Freight saw a 2.9% drop in revenue during the quarter and was the biggest drag on results. After the weak results, management said that it has retained Credit Suisse to help refinance debt or recapitalize the company, which is never a great sign. This has "do not touch" written all over it because there's no sign operations are improving quickly enough to save the company.
Interested in more info on YRC Worldwide? Add it to your watchlist by clicking here.
The article Why YRC Worldwide's Shares Dropped originally appeared on Fool.com.Fool contributor Travis Hoium has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.