Read the 3rd quarter earnings call. Turning down profitable business. Get ready for a rough ride in April!
Shares of YRC Worldwide Inc.
YRCW, -1.39% plummeted 25% in afternoon trade, to pace the Nasdaq exchange's decliners, after the trucking company reported a bid third-quarter earnings miss, even though revenue top expectations. Net income was $15.1 million, or 9 cents a share, compared with $5.5 million, or 9 cents a share, in the same period a year ago. According to FactSet, adjusted earnings per share of 15 cents missed the average analyst estimate of 57 cents. Revenue rose to $1.30 billion from $1.25 billion, topping the FactSet consensus of $1.29 billion. The company explained in the post-earnings conference call that it was forced to turn away profitable business, given one of the most competitive driver hiring environments and fleet maintenance issues. The company also said it had to make unfavorable adjustments on third-party claims, and costs for third-party customer specific logistics increased.