YRC Worldwide shares surge on hope for improving conditions

YRC Worldwide surge; analyst upgrades shares, says industry conditions improving NEW YORK (AP) -- Shares of trucker YRC Worldwide Inc. surged Friday after a Morgan Keegan analyst upgraded the stock, saying business conditions for light freight carriers should improve.

The Overland Park, Kan., company said it will earn between 30 and 40 cents per share in the second quarter, as cost cuts will help YRC cancel out difficult economic conditions. On average, Wall Street expects the company to earn 33 cents per share.

Shares jumped $4.14, or 31.9 percent, to close at $17.10.

Analyst Art Hatfield upgraded the stock to "Market Perform" from "Underperform" after the company made the forecast and reported its first-quarter results. He thinks the company's results will improve in the coming quarters as conditions get better. He noted that the company's second-quarter guidance only reflected company-specific initiatives, and not changes in the external operating environment.

Late Thursday, YRC took a larger loss than analysts expected in the first quarter. Its revenue was slightly below estimates.