ArcBest (NASDAQ:ARCB) Releases Earnings Results, Beats Expectations By $0.12 EPS

Key Points

• ArcBest reported quarterly EPS of $2.62, beating the $2.50 consensus estimate, while revenue rose 15.5% year over year to $1.21 billion, also exceeding expectations.
• Asset-Based operating ratio improved to 90.4%, and Asset-Light operating income increased to $14 million from $1 million a year earlier, reflecting stronger freight mix, pricing, and productivity.
• Management cited early signs of stronger freight demand but does not expect a significant recovery in 2027; it expects continued progress toward its 2028 targets.

ArcBest (NASDAQ:ARCB - Get Free Report) issued its quarterly earnings results on Wednesday. The transportation company reported $2.62 EPS for the quarter, beating analysts' consensus estimates of $2.50 by $0.12, Zacks reports. The company had revenue of $1.21 billion during the quarter, compared to the consensus estimate of $1.20 billion. ArcBest had a return on equity of 7.92% and a net margin of 0.39%. ArcBest's revenue was up 15.5% on a year-over-year basis. During the same period last year, the business posted $1.46 earnings per share.

Here are the key takeaways from ArcBest's conference call:

• ArcBest reported third-quarter revenue of $1.2 billion, up 15% year over year, while non-GAAP operating income rose to $85 million from $50 million and adjusted EPS increased to $2.62 from $1.46.
• Asset-Based operating ratio improved 210 basis points to 90.4%, supported by higher tonnage, disciplined pricing, and a heavier freight mix. Contract renewals averaged a 5.1% increase, though daily shipments declined 3% year over year.
• Asset-Light operating income climbed to $14 million from $1 million a year earlier, with record managed-logistics results and improved pricing and productivity. Management expects the business to earn approximately $7 million to $10 million in the seasonally weaker fourth quarter.
• Management cited encouraging early signs in freight demand but said it is not assuming a significant recovery in 2027; heavier-shipment growth is expected to moderate as comparisons strengthen. It nevertheless expects 2027 to bring further improvement and progress toward its 2028 targets, including the full run rate of restructuring savings.

ArcBest Stock Performance

Shares of ARCB stock traded up $4.56 on Wednesday, hitting $139.04. 375,658 shares of the stock were exchanged, compared to its average volume of 335,272. The firm's 50 day moving average is $131.45 and its two-hundred day moving average is $124.69. ArcBest has a one year low of $59.43 and a one year high of $176.69. The firm has a market capitalization of $3.11 billion, a PE ratio of 201.51, a P/E/G ratio of 0.40 and a beta of 1.71. The company has a current ratio of 0.97, a quick ratio of 0.97 and a debt-to-equity ratio of 0.10.

ArcBest Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Friday, November 27th. Stockholders of record on Friday, November 13th will be paid a dividend of $0.12 per share. The ex-dividend date is Friday, November 13th. This represents a $0.48 annualized dividend and a dividend yield of 0.3%. ArcBest's dividend payout ratio is presently 69.57%.

Trending Headlines about ArcBest

Here are the key news stories impacting ArcBest this week:

• Positive Sentiment: ArcBest earned $2.62 per share, above consensus estimates of $2.50–$2.54 and up from $1.46 a year earlier. Revenue rose 15.5% year over year to $1.21 billion, also exceeding the $1.20 billion estimate. ArcBest tops Q3 earnings and revenue estimates ArcBest Q3 earnings report

Wall Street Analysts Forecast Growth

A number of brokerages have issued reports on ARCB. UBS Group upped their price objective on ArcBest from $145.00 to $154.00 and gave the company a "neutral" rating in a research note on Monday, August 3rd. Stifel Nicolaus lowered their target price on ArcBest from $185.00 to $168.00 and set a "buy" rating on the stock in a research note on Thursday, October 8th. Zacks Research cut ArcBest from a "strong-buy" rating to a "hold" rating in a research note on Wednesday, August 5th. The Goldman Sachs Group reissued a "buy" rating and issued a $172.00 price target on shares of ArcBest in a report on Wednesday, July 29th. Finally, Jefferies Financial Group restated a "buy" rating on shares of ArcBest in a research report on Wednesday. One equities research analyst has rated the stock with a Strong Buy rating, seven have assigned a Buy rating and seven have assigned a Hold rating to the stock. According to MarketBeat, ArcBest currently has a consensus rating of "Moderate Buy" and an average price target of $153.15.

Insider Transactions at ArcBest

In related news, VP Jason Parks sold 855 shares of the business's stock in a transaction dated Tuesday, September 15th. The stock was sold at an average price of $135.09, for a total value of $115,501.95. Following the sale, the vice president directly owned 3,794 shares in the company, valued at approximately $512,531.46. The trade was a 18.39% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, Director Judy McReynolds sold 2,857 shares of the company's stock in a transaction dated Friday, August 7th. The shares were sold at an average price of $138.98, for a total transaction of $397,065.86. Following the sale, the director directly owned 50,048 shares in the company, valued at approximately $6,955,671.04. This trade represents a 5.40% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold a total of 5,155 shares of company stock worth $713,578 over the last 90 days. 0.98% of the stock is currently owned by company insiders.

ArcBest Company Profile

ArcBest Corporation NASDAQ: ARCB is a multibillion-dollar logistics company headquartered in Fort Smith, Arkansas. The company provides freight transportation and supply chain solutions through a combination of asset-based and asset-light operations, serving businesses across North America and supporting select international shipping needs.

Its asset-based business is led by ABF Freight, a less-than-truckload carrier that transports palletized and industrial freight. ArcBest also offers expedited transportation, truckload and brokerage services, intermodal transportation, managed transportation, warehouse and distribution support, and supply chain consulting.

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