Please ensure Javascript is enabled for purposes of website accessibility

Why YRC Worldwide Stock Just Popped 19%

By Rich Smith - May 3, 2018 at 11:29AM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Losses are less than expected. I guess that's a good thing.

What happened

Shares of YRC Worldwide (YELL 1.65%) stock are up a big 18.7% as of 10:50 AM EDT despite the interstate trucker reporting a big $0.44 per share loss for its fiscal first quarter 2018.

YRC, you see, had been expected to report a much bigger loss of $0.60 per share, so Wall Street is taking the $0.44 loss as good news today. Sales-wise, the company's $1.22 billion in Q1 revenue matched consensus estimates.

Semi truck driving down road.

YRC stock is stepping on the gas and motoring today. Image source: Getty Images.

So what

YRC's sales grew a bit less than 4% year over year, and its losses per share were down about 44% from last year (when YRC had reported a $0.78 per share loss).

Demand for trucking was strong last quarter, with YRC reporting a "consolidated operating ratio" of 100.4. This is permitting YRC to charge premium rates for its services, with revenue per "hundredweight" up 6% year over year including fuel surcharges, and up 4.4% without those surcharges.

Now what

And the news could continue to be good for some time to come, with even the prospect of profits not out of the question. Management declined to give specific guidance for the rest of this year, but did allow that "the pricing and demand environment remains favorable," and "year-over-year financial improvement [will] be weighted to the second half of the year."

For what it's worth, Wall Street seems to agree. Consensus estimates call for YRC to earn $0.78 per share this year after losing $0.33 per share last year.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Yellow Corporation Stock Quote
Yellow Corporation
$3.09 (1.65%) $0.05

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 07/05/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.