YRC Worldwide Inc. surged the most since 2013 after exceeding analysts’ profit estimates, signaling that a turnaround is taking hold at a trucker struggling with annual losses since 2007.
“A monster Q2 beat,” Deutsche Bank AG analyst Robert Salmon said Friday in a note to clients following YRC’s second-quarter earnings release Thursday. “BBQ ain’t the only thing hot right now in KC,” Stifel Financial Corp.’s David Ross said, referring to YRC’s headquarters near Kansas City, Missouri.
YRC racked up $1.4 billion in debt from acquisitions and what Chief Executive Officer James Welch has called “numerous missteps” before he took the top job in 2011. Welch has been reshaping the company to focus on its most-profitable operations, ceding market share where necessary to achieve that goal, Ross said in a note.
Adjusted earnings before interest, taxes, depreciation and amortization were $109.4 million, Overland Park, Kansas-based YRC said Thursday. That outpaced the $83.6 million average estimate of four analysts in a Bloomberg survey.
YRC rose 26 percent to $19.30 at the close in New York, the biggest one-day jump since November 2013. The advance pared this year’s drop to 14 percent.
The company was once the biggest U.S. trucker by sales, before the stumbles that twice dragged it to the brink of default since 2009, only to step back after getting help from creditors and union concessions.