YRC Worldwide Earnings: Here’s Why Investors are Not Happy Now

YRC Worldwide Inc. (NASDAQ:YRCW) had a loss and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 14.28%.

YRC Worldwide Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased to $-1.72 in the quarter versus EPS of $-3.21 in the year-earlier quarter.

Revenue: Decreased 99.96% to $440,000 from the year-earlier quarter.

Actual vs. Wall St. Expectations: YRC Worldwide Inc. reported adjusted EPS loss of $1.72 per share. By that measure, the company missed the mean analyst estimate of $-0.64. It missed the average revenue estimate of $1.26 billion.

Quoting Management: “As we move through 2013, we continue to make steady progress on our long-term objective of regaining a leadership position in the LTL industry. In the second quarter, we paved the way for future success by making investments in newly leased tractors and trailers, completing the rollout of mobile handheld productivity devices for our city drivers, and completing the second largest network optimization in YRC Freight history,” said YRC Worldwide CEO James Welch. “While the Regionals continue to excel in their markets, YRC Freight faced some headwinds during the implementation of the network optimization plan. We recorded a one-time charge of $6.3 million related to the network optimization, which is a small investment in what we anticipate will be approximately $25 to $30 million in annual savings,” added Welch

Key Stats (on next page)…

Revenue decreased 99.96% from $1.17 billion in the previous quarter. EPS decreased to $-1.72 in the quarter versus EPS of $-2.93 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a loss of $1.49 to a loss $1.13. For the current year, the average estimate has moved up from a loss of $6.44 to a loss of $4.12 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)