Shares of Yellow Corp. (YELL), the trucking company that recently filed for bankruptcy, experienced a significant decline of 6.8% in premarket trading on Wednesday morning. This drop comes shortly after the company announced a second-quarter loss due to a significant decrease in revenue, surpassing 20%.
Yellow Corp. reported a net loss of $12.3 million, or 28 cents per share, in comparison to a net income of $61.5 million, or $1.15 per share, during the same period last year. Furthermore, revenue suffered a substantial decline of 20.9%, amounting to $1.13 billion.
With limited analyst estimates available, FactSet was unable to provide a consensus regarding per-share losses and revenue.
The company attributes its recent bankruptcy filing to a “substantial workforce reduction impacting all areas of the organization” on August 6th. This decision has undoubtedly contributed to the decrease in their stock value, which experienced a 30.5% decline on Monday after the filing, though it had risen by 24.2% on Tuesday.
Although Yellow Corp.’s stock had soared by an impressive 116.9% in the past three months, it has endured a sharp decline of 57.2% over the past year.
Overall, these recent developments in Yellow Corp.’s financial performance indicate the challenges it faces and the need for restructuring to ensure future stability and growth.
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