Shares of Yellow Corp. fell 20%, to $2.66, in early trading after the company said sales declined more steeply than expected in an unprofitable fourth quarter.
The trucking company’s net loss narrowed to $15.5 million, or 30 cents a share, from $44.7 million, or 88 cents a share, in the same quarter a year ago. Analysts surveyed by FactSet had been expecting the company to turn a profit and post earnings of one cent a share.
Revenue slipped to $1.2 billion from $1.31 billion last year, below analyst expectations of $1.24 billion, according to FactSet.
Chief Executive Darren Hawkins said demand for less-than-truckload capacity fell from an already tight environment a year ago, which contributed to a decline in tonnage per workday.
“The manufacturing sector’s strength began to waver, similar to the retail sector earlier in the year, pointing to a loss of economic momentum,” he said.