ArcBest Q4 Earnings Report Analysis
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: seekingalpha
- Non-GAAP EPS: ArcBest reported a Q4 non-GAAP EPS of $0.36, missing expectations by $0.06, indicating pressure on profitability that may affect investor confidence.
- Total Revenue Trends: The company's total revenue for Q4 was $972.7 million, a 2.7% year-over-year decline, although it exceeded expectations by $5.3 million, the ongoing revenue drop poses challenges for future growth.
- Asset-Based Business Performance: Revenue from the asset-based segment was $648.8 million, down 0.3% from $656.2 million last year, despite a 2.6% increase in tonnage per day, reflecting intensified market competition that hampers revenue growth.
- Asset-Light Business Revenue: The asset-light segment generated $353.5 million in revenue, a 5.1% year-over-year decline, with a 0.8% increase in shipments per day, but a 5.8% drop in revenue per shipment indicates rising cost pressures that could impact future profitability.
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Analyst Views on ARCB
Wall Street analysts forecast ARCB stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for ARCB is 87.38 USD with a low forecast of 76.00 USD and a high forecast of 104.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
8 Analyst Rating
3 Buy
5 Hold
0 Sell
Moderate Buy
Current: 85.980
Low
76.00
Averages
87.38
High
104.00
Current: 85.980
Low
76.00
Averages
87.38
High
104.00
About ARCB
ArcBest Corporation is a logistics company. It leverages technology and a full suite of solutions to meet its customers’ supply chain needs. Its segments include Asset-Based, which consists of ABF Freight System, Inc. and certain other subsidiaries, and Asset-Light, which includes MoLo Solutions, LLC (MoLo), Panther, and certain other subsidiaries. The Asset-Based segment provides less-than-truckload (LTL) services through ABF Freight’s motor carrier operations. Its Asset-Based segment offers transportation of general commodities through standard, time-critical, and LTL services. The Asset-Light segment includes the ground expedite services of Panther; its truckload operations, including the truckload brokerage services of MoLo; household goods moving services under the U-Pack brand and its managed transportation solutions. Its truckload and dedicated services provide third-party transportation brokerage services by sourcing various capacity solutions including dry van over-the-road.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
ArcBest Q4 Earnings Announcement Scheduled
- Earnings Release Date: ArcBest is set to announce its Q4 earnings on January 30 before market open, with a consensus EPS estimate of $0.42, reflecting a significant 68.4% year-over-year decline, which may dampen investor sentiment.
- Revenue Decline: The anticipated revenue of $967.4 million for Q4 represents a 3.3% year-over-year decrease, indicating challenges the company faces in the current economic climate that could impact future investment decisions.
- Performance Forecast Adjustments: Over the past three months, EPS estimates have seen no upward revisions and 13 downward adjustments, while revenue estimates experienced 2 upward revisions and 8 downward adjustments, highlighting increasing market concerns regarding the company's profitability.
- Long-term Goals: Despite short-term pressures, ArcBest has set an ambitious EPS target of $12 to $15 by 2028, demonstrating the company's strategic commitment to strengthening its core LTL business and maintaining cost discipline.
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ArcBest Reports Net Loss in Q4
- Net Loss Reported: ArcBest reported a net loss of $8.12 million in Q4, contrasting sharply with a profit of $29.04 million in the same quarter last year, indicating a significant decline in profitability that could undermine investor confidence.
- Earnings Per Share Decline: The company recorded a loss per share of $0.36 compared to earnings of $1.24 per share last year, reflecting financial pressure in ongoing operations that may lead to further stock price declines.
- Adjusted Net Income Drop: Adjusted net income fell to $8.24 million from $31.20 million year-over-year, highlighting challenges in cost management and revenue generation that could impact future financial stability.
- Revenue and EBITDA Decline: Revenue decreased from $1 billion to $972.69 million, while adjusted EBITDA dropped from $74 million to $51.52 million, suggesting a decline in overall operational efficiency that may necessitate a reassessment of business strategies to restore growth.
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