YRC Worldwide Falls 28% After Q3 Results

YRC Worldwide (NASDAQ: YRCW) was down more than 28 percent in after hours trading after announcing the firm's third quarter results.

The company reported a Q3 EPS of $(4.45), which may not compare to the Street estimate of $(0.46). Earnings per share were down three percent from the year-ago period. Revenue came in at $1.25 billion, which may not compare to Wall Street's estimate of $1.26 billion. Sales were up one percent year-over-year.

"The decline in year-over-year consolidated operational performance for the third quarter is primarily attributed to YRC Freight," YRC Worldwide CEO and recently-appointed YRC Freight President James Welch said in a company release.

"Our third quarter performance was hindered by declines in service, manpower shortages and declines in yield," he added. "During the quarter, the YRC Freight network was 'out of cycle,' which caused our service to decline in certain lanes. Additionally, due to summer vacations and the movement of drivers resulting from the network optimization, we were short drivers in certain terminals which obviously impacted service in those areas."

"The shortage also resulted in higher than expected overtime pay, increased purchased transportation in certain lanes, and lower productivity," he continued.

"Finally, yield was negatively impacted by increases in our weight per shipment, loss of volume from higher yielding channels and declines in weight and inspection revenue."

In addition to the after hours declines, YRC Worldwide closed down 8.54 percent Tuesday afternoon.

When the market closed on Monday, YRC Worldwide was up more than 57 percent year-to-date.

Disclosure: At the time of this writing, Louis Bedigian had no position in the equities mentioned in this report.

Louis Bedigian is the Senior Tech Analyst and Features Writer of Benzinga. You can reach him at louis(at)benzingapro(dot)com. Follow him @LouisBedigianBZ