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YRC Worldwide’s Stock Behavior after the 4Q16 Results

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Feb. 9 2017, Published 4:39 p.m. ET

YRC Worldwide’s 4Q16 earnings

Premier shipping company YRC Worldwide (YRCW) announced its 4Q16 results on February 6, 2017, reporting EPS (earnings per share) of -$0.23, as compared to the Wall Street analyst estimation of positive earnings in 4Q16.

YRC’s 4Q16 EBITDA (earnings before interest, tax, depreciation, and amortization) came in at $55.2 million, as compared to its own guidance range of $53.0 million–$63.0 million. Notably, the company’s EBITDA numbers were 6.7% lower than the analysts’ estimates for 4Q16.

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YRC Worldwide’s stock price performance

Although YRCW’s revenue rose marginally, the company reported a net loss of $75.3 million in 4Q16. After the 4Q16 earnings disclosure, the company’s stock took a major beatdown, crashing 12% on February 7 to close at $13.2. It fell further on February 8, closing that day at $12.9.

Since the beginning of 2017, YRCW has given a negative return of 2.3%. Let’s go through the peer group’s stock price performance since January 1, 2017.

  • ArcBest (ARCB) rose 11%.
  • Old Dominion Freight Line (ODFL) rose 3.6%.
  • Forward Air (FWRD) fell 1.6%.
  • XPO Logistics (XPO) rose 3.4%.
  • United Parcel Service (UPS) fell 7.4%.
  • FedEx (FDX) rose 1%.

The Industrial Select Sector SPDR Fund (XLI) returned 2.4% since the beginning of 2017.

What did management say?

YRCW CEO (chief executive officer) James Welch stated: “In the fourth quarter 2016, year-over-year tonnage per day was up at YRC Freight and flat at the Regional segment. However, YRC Freight’s year-over-year revenue per hundredweight declined, which impacted its ability to offset cost increases during the quarter. Our pricing strategy remains focused on profitability while delivering award-winning customer service.”

In the series

In this 4Q16 post earnings series on YRCW, we’ll cover the company’s segmental performance, go through its operating margins, and examine the Wall Street analysts’ recommendations following the 4Q16 results.

Investors interested in more details YRC Worldwide’s business should check out Market Realist’s An Investor’s Perspective of YRC Worldwide.

Continue to the next part for a closer look at YRC’s revenues by segment.

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