Trucking company Yellow (NASDAQ: YELL) 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.
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.
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Why Yellow Corp. Stock Is Down Big Today