What happened

Trucking company Yellow (YELL 4.09%) failed to deliver for investors in the third quarter. The stock hit a pothole as a result, with shares down more than 20% in Thursday trading.

So what

Yellow has been something of a comeback story in the world of trucking, a one-time industry consolidator that nearly collapsed under the weight of the debt it took on doing deals. Yellow has done much better of late, leading some investors to believe the worst was over for this chronic underperformer.

Third-quarter results seemingly raised more questions than they answered. Yellow earned $0.09 per share in the three months on revenue of $1.36 billion, missing analyst expectations for a $0.58-per-share profit on sales of $1.37 billion. The results were impacted by a $19.4 million year-over-year increase in third-party liability claims that hit the bottom line, including claims that are years old but are finally being resolved.

Operating income and revenue were up on a year-over-year basis, and the company is making progress lowering the percentage of revenue that is transported on purchased third-party vehicles. Yellow's operating ratio, a measure of how much it costs to earn revenue, was 96.4% in the quarter, up slightly from 96.3% a year ago. (The lower the number, the better.)

Now what

Yellow is making progress in its effort to streamline its patchwork collection of assets. In September, the company completed its work to integrate 89 former YRC Freight and Reddaway terminals operating in the western U.S. into one combined system. CEO Darren Hawkins in a statement said, "The early results are meeting expectations and customers benefit by having one driver pick up and deliver both regional and long-haul shipments."

There are a lot more, similar, opportunities to grow more efficient up ahead, but Yellow is attempting its restructuring in an environment that is rapidly deteriorating for truckers as large corporate customers try to trim costs ahead of a possible slowdown.

Yellow is finally on the right path, but third-quarter results were a reminder to investors about how long this journey will take. Given the macroeconomic risks up ahead, investors appear reluctant to go along for the ride.