Why Shares of YRC Worldwide, Inc. Popped Today
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 shipping company YRC Worldwide jumped 15% today after reporting earnings.
So what: Fourth-quarter revenue rose 3% to $1.21 billion and swung to a small profit of $400,000. On a per-share basis, the company lost $1.71, which was still lower than the $2.77 loss analysts expected.
Now what: We're still not seeing the benefits from a union contract reached earlier this year, so it's hard to say what earnings look like for 2014. I think this is a risky stock, given the low growth rate and mounting losses. That's why I'm not a buyer despite the pop today.
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The article Why Shares of YRC Worldwide, Inc. Popped Today originally appeared on Fool.com.Travis Hoium and The Motley Fool have no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools don't 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.
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