ArcBest® Earnings
In the fourth quarter of 2024, ArcBest® (NASDAQ: ARCB) released its financial results with a noticeable dip in revenue. The company reported a quarterly revenue of $1.0 billion, down from $1.1 billion in the same quarter of the previous year. The net income also experienced a significant drop, settling at $29.0 million, or $1.24 per diluted share, compared to $48.8 million, or $2.01 per diluted share, in Q4 2023. This represents a challenging quarter for ArcBest, with decreased earnings reflecting broader industry obstacles.
Key Financial Metrics
| Financial Metric | Q4 2024 | Q4 2023 | YoY Change |
|---|---|---|---|
| Total Revenue | $1.0 billion | $1.1 billion | Decreased by 9.1% |
| Net Income (GAAP) | $29.0 million | $48.8 million | Decreased by 40.6% |
| Earnings Per Share (GAAP) | $1.24 | $2.01 | Decreased by 38.3% |
| Non-GAAP Net Income | $31.2 million | $60.0 million | Decreased by 48.0% |
| Non-GAAP EPS | $1.33 | $2.47 | Decreased by 46.2% |
ArcBest's financial results signal a challenging environment, with the decrease in both revenue and net income primarily due to a tough freight market and rising operational costs. However, the company managed to mitigate some of these challenges with a focus on productivity improvements and cost controls, demonstrating resilience amid adversity.
ArcBest® Results
ArcBest's performance indicates a significant year-over-year decline in financial metrics. Total revenue decreased by 9.1%, and net income fell by 40.6%. Earnings per share mirrored this downward trend with a 38.3% drop. The non-GAAP figures, reflecting adjustments for non-recurring items, showed an even sharper decline. These results suggest persistent headwinds in the freight and logistics industry, with ArcBest striving to navigate this challenging landscape.
Revenue Breakdown
A closer examination of ArcBest's revenue performance across its major segments reveals sector-specific challenges and resilience:
| Segment | Q4 2024 Revenue | Q4 2023 Revenue | YoY Change |
|---|---|---|---|
| Asset-Based | $656.2 million | $710.0 million | Decreased 7.6% |
| Asset-Light | $375.4 million | $413.4 million | Decreased 9.2% |
The Asset-Based segment, which includes traditional freight services, faced difficulties characterized by decreased tonnage and shipments per day. However, there was an increase in revenue per hundredweight, indicating successful rate management. Meanwhile, the Asset-Light segment confronted a soft rate environment but made strides in productivity, measured by shipments per employee per day, reflecting operational efficiencies.
Key Developments
During this quarter, ArcBest embarked on several key developments worth noting:
- The company made significant financial commitments by investing over $85 million in share repurchases and dividends, signaling confidence in its long-term strategy and shareholder value proposition.
- ArcBest maintained its focus on improving productivity and managing expenses in the face of softer market conditions, underscoring its dedication to operational efficiency.
- Network enhancements and technology investments were pursued to support long-term growth, reflecting ArcBest's proactive strategy for future readiness.
Comments from Company Officers
Judy R. McReynolds, the Chairman and CEO of ArcBest, provided critical insights into the company's priorities. She emphasized ArcBest's unwavering commitment to cost control and productivity, highlighting how employees play a pivotal role in hitting key milestones which position the company for future expansion and success.
Dividends and Share Repurchases
During 2024, ArcBest actively returned capital to shareholders, amounting to over $85 million in share repurchases and dividends. As of January 29, 2025, the company had $48.7 million remaining under its current share repurchase authorization. This strategic financial approach demonstrates ArcBest's dedication to maximizing shareholder returns while maintaining capital flexibility.
ArcBest® Stock Forecast
Despite the challenges ArcBest faced in Q4 2024, the company remains committed to its strategic objectives and continues to focus on operational efficiencies and technological investments. Given the recent earnings trajectory, the company's near-term stock price could fluctuate. Based on fundamental analysis, ArcBest's high-end stock price projection might hover around $100, provided market conditions improve and operational strategies pay off. Conversely, should industry challenges persist, a low-end stock price near $85 is plausible. Evaluating current market trends, with a last reported price of $94.51 and a market cap of approximately $2.46 billion, investors should consider both the volatility and potential growth prospects when assessing ArcBest's stock trajectory.
ArcBest is poised to navigate a competitive market landscape, balancing capital allocation with strategic investments aimed at long-term growth.
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