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 transportation service company YRC Worldwide (NASDAQ:YRCW) fell 23% today after the company released earnings.
So what: Second-quarter revenue fell slightly to $1.24 billion and fell short of the $1.26 billion estimate from Wall Street. The bottom line was the big concern, though, as the company lost $1.72 per share, nearly double the expected $0.88 loss.
Now what: Freight saw a 2.9% drop in revenue during the quarter and was the biggest drag on results. After the weak results, management said that it has retained Credit Suisse to help refinance debt or recapitalize the company, which is never a great sign. This has "do not touch" written all over it because there's no sign operations are improving quickly enough to save the company.
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