Yellow Corporation (YELL) Misses Q2 EPS by 4c

Yellow Corporation (NASDAQ: YELL) reported Q2 EPS of ($0.18), $0.04 worse than the analyst estimate of ($0.14). Revenue for the quarter came in at $1.31 billion versus the consensus estimate of $1.29 billion.

“I am pleased with the yield progress in the second quarter and look forward to continued operational efficiencies,” said Darren Hawkins, Chief Executive Officer. “Strong customer demand and an industry-wide shortage of qualified drivers are contributing to tight capacity and a favorable yield environment. Sequentially, LTL revenue per hundredweight increased 7.6% in the second quarter 2021 compared to first quarter 2021 and 16.2% compared to a year ago. This contributed to a nearly 30% increase in second quarter revenue compared to last year when the U.S. economy was severely impacted by the initial stages of the COVID-19 pandemic. With inventories below normal levels and U.S. manufacturing expected to return to full strength once the microchip shortage ends, demand for LTL capacity is positioned to remain strong into 2022.

“Our yield strategy is also helping us manage near-term headwinds from higher purchased transportation expense. We are executing plans to reduce the use of local cartage and over the road purchased transportation and expect to see improvement as we move forward.

“We are making steady progress towards One Yellow and the multi-year transformation remains on schedule. Two of our companies are now operating on One Yellow technology platform with the conversion of the others expected to be completed by the end of the year. Moving to a single technology platform sets the stage for a fully integrated network. I am excited for what One Yellow means for our customers, employees and shareholders. We will go to market as a super-regional carrier with enhanced service in the 1, 2 and 3-day lanes nationwide and provide customers with choice, simplicity, speed, visibility and reliability.

“We are continuing to invest in Yellow with one of the largest capital expenditure plans in Company history. Through the first half of 2021, we have acquired more than 1,800 tractors, 2,200 trailers and 400 containers. The investments are expected to enhance safety, improve fuel efficiency, reduce maintenance expense and augment our sustainability efforts. We maintained our strong liquidity position during the second quarter helping us narrow 2021 capital expenditures guidance range from $450 million to $550 million to $480 million to $530 million,” concluded Hawkins.

For earnings history and earnings-related data on Yellow Corporation (YELL) click here.

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