Price of Roadrunner Shares Fall Sharply
Well-known carrier Roadrunner got some bad news earlier this month, as it was reported their stocks plummeted more than 20%, resulting in a six-month low of $7.02. For reference, Roadrunner’s stock was priced at over $26 a share just last year. While analysts reported that the drop was not something they were happy about, the stock did retain a “buy” rating. There is certainly room for improvement, and those within the company hope the setback is only temporary.
Recent expansions and acquisitions made many believe that Roadrunner was a reliable company to invest in. This was true, to some degree. Their LTL segments provided the most revenue, though they offer several different types of freight and shipping services. But overall consolidated gross revenue has continued to slump for four straight quarters, with combined revenue at the units dropping 6.7% in the second quarter from the same quarter a year ago.
The company’s core area, truckload business, also experienced a fall in revenue. The 1.3% slip dropped the organization to $282 million. Roadrunner isn’t the only company that has reported low profits in this quarter. Lower shipping demand and decreased freight rates have contributed to the overall industry-wide slump that most companies are experiencing.
Although trucking-revenue negatives continue to stick around, things are improving slightly. While the first quarter saw then down from an 11.9% to decline to an 8.7% drop, the current number notes a 5.5% drop. This means that while things still aren’t great, the problem does seem to be getting better. Roadrunner hopes for improvements in the second half of the year, with the goal of getting stock prices back up.