ArcBest (NASDAQ:ARCB) Posts Quarterly Earnings Results

ArcBest (NASDAQ:ARCB) posted its earnings results on Wednesday. The transportation company reported $2.62 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.50 by $0.12, Zacks reports. ArcBest had a return on equity of 7.92% and a net margin of 0.39%. The firm had revenue of $1.21 billion for the quarter, compared to the consensus estimate of $1.20 billion. During the same quarter in the prior year, the business posted $1.46 earnings per share. The business’s quarterly revenue was up 15.5% on a year-over-year basis.

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 Price Performance

ArcBest stock traded up $4.56 during midday trading on Wednesday, hitting $139.04. 375,658 shares of the company’s stock were exchanged, compared to its average volume of 335,272. ArcBest has a 52-week low of $59.43 and a 52-week high of $176.69. The stock has a 50-day moving average price of $131.45 and a two-hundred day moving average price of $124.69. The company has a debt-to-equity ratio of 0.10, a quick ratio of 0.97 and a current ratio of 0.97. The company has a market cap of $3.11 billion, a P/E ratio of 201.51, a PEG ratio of 0.40 and a beta of 1.71.

ArcBest Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, November 27th. Investors of record on Friday, November 13th will be paid a dividend of $0.12 per share. The ex-dividend date of this dividend is Friday, November 13th. This represents a $0.48 annualized dividend and a yield of 0.3%. ArcBest’s dividend payout ratio (DPR) is currently 69.57%.

Insider Transactions at ArcBest

In other ArcBest news, VP Jason Parks sold 855 shares of the firm’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 owned 3,794 shares of the company’s stock, valued at $512,531.46. This trade represents a 18.39% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, Director Judy McReynolds sold 2,857 shares of ArcBest stock in a transaction dated Friday, August 7th. The shares were sold at an average price of $138.98, for a total value of $397,065.86. Following the sale, the director owned 50,048 shares of the company’s stock, valued at approximately $6,955,671.04. This trade represents a 5.40% decrease in their position. 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. Corporate insiders own 0.98% of the company’s stock.

Wall Street Analyst Weigh In

Several brokerages have recently weighed in on ARCB. Weiss Ratings reiterated a “hold (c-)” rating on shares of ArcBest in a research report on Tuesday, August 25th. Jefferies Financial Group reissued a “buy” rating on shares of ArcBest in a report on Wednesday. TD Cowen cut their target price on ArcBest from $175.00 to $155.00 and set a “hold” rating for the company in a research note on Thursday, July 30th. Truist Financial cut their target price on ArcBest from $165.00 to $160.00 and set a “buy” rating for the company in a research note on Wednesday, October 7th. Finally, Wall Street Zen raised ArcBest from a “buy” rating to a “strong-buy” rating in a report on Saturday. One analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating and seven have given a Hold rating to the stock. According to data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and a consensus target price of $153.15.

ArcBest News Summary

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

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.