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 (NASDAQ: YRCW  ) 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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