Shares of YRC Worldwide Inc., battered recently after a deep cut in the transportation giant’s first-quarter earnings guidance, on Tuesday reached their lowest point in almost two years.
The drop to a 52-week low of $37.11 — the lowest point since shares were at $36.60 on June 8, 2004 — came on the heels of a trucking industry report that showed shipments declined in February.
Shares of Overland Park-based YRC have lost almost $8 since March 22, when the company cut its first-quarter earnings forecast to a range of 65 cents to 70 cents per share, from a previous guidance of $1 to $1.05. The company cited cost overruns at its Yellow Transportation subsidiary and lower volume overall.
YRC Worldwide closed at $37.41 on Tuesday, down 57 cents, or 1.5 percent.
YRC’s drop coincided with a major down day on Wall Street as investors responded to the 15th consecutive increase to short-term interest rates by the Federal Reserve. Although the increase had been expected, investors who had hoped for signals that the increases were nearing an end were disappointed by Fed language that indicated additional increases would be considered.
The Dow Jones industrial average fell 95.57 points, or 0.85 percent, and closed at 11,154.54. The Nasdaq composite index dropped 11.12 points, or 0.48 percent, and closed at 2,304.46. The Standard & Poor’s 500 index was down 8.38 points, or 0.64 percent, and closed at 1,293.23.
Early in the session, stocks received a boost from a strong report on consumer confidence.
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