ArcBest (NASDAQ:ARCB – Get Free Report) released its earnings results on Wednesday. The transportation company reported $2.62 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.50 by $0.12, Zacks reports. The business had revenue of $1.21 billion for the quarter, compared to analyst estimates of $1.20 billion. ArcBest had a net margin of 0.39% and a return on equity of 7.92%. ArcBest’s revenue for the quarter was up 15.5% on a year-over-year basis. During the same quarter in the previous year, the business earned $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 Up 0.5%
Shares of NASDAQ:ARCB traded up $0.76 during trading on Thursday, reaching $140.04. 71,584 shares of the stock were exchanged, compared to its average volume of 334,590. ArcBest has a 1-year low of $59.43 and a 1-year high of $176.69. The stock has a fifty day moving average of $131.52 and a two-hundred day moving average of $124.93. The company has a debt-to-equity ratio of 0.10, a current ratio of 0.97 and a quick ratio of 0.97. The firm has a market cap of $3.13 billion, a price-to-earnings ratio of 203.83, a price-to-earnings-growth ratio of 0.41 and a beta of 1.71.
ArcBest Dividend Announcement
The company also recently announced a quarterly dividend, which will be paid on Friday, November 27th. Stockholders of record on Friday, November 13th will be given a dividend of $0.12 per share. This represents a $0.48 dividend on an annualized basis and a dividend yield of 0.3%. The ex-dividend date of this dividend is Friday, November 13th. ArcBest’s dividend payout ratio is presently 69.57%.
Analyst Upgrades and Downgrades
ARCB has been the subject of several research analyst reports. Stifel Nicolaus lowered their price objective on ArcBest from $185.00 to $168.00 and set a “buy” rating for the company in a research report on Thursday, October 8th. Truist Financial cut their target price on ArcBest from $165.00 to $160.00 and set a “buy” rating on the stock in a research report on Wednesday, October 7th. Citigroup reaffirmed a “cautious” rating on shares of ArcBest in a research note on Wednesday, October 7th. Weiss Ratings reiterated a “hold (c-)” rating on shares of ArcBest in a report on Tuesday, August 25th. Finally, Zacks Research lowered ArcBest from a “strong-buy” rating to a “hold” rating in a research note on Wednesday, August 5th. One equities research analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating and seven have given a Hold rating to the company. Based on data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $153.15.
Get Our Latest Stock Report on ArcBest
Insider Buying and Selling at ArcBest
In other ArcBest news, VP Jason Parks sold 855 shares of the business’s stock in a transaction on Tuesday, September 15th. The shares were sold at an average price of $135.09, for a total transaction of $115,501.95. Following the completion of the sale, the vice president 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 document filed with the SEC, which can be accessed through the SEC website. Also, Director Judy McReynolds sold 2,857 shares of the company’s stock in a transaction on Friday, August 7th. The stock was sold at an average price of $138.98, for a total transaction of $397,065.86. Following the transaction, the director owned 50,048 shares in the company, valued at approximately $6,955,671.04. The trade was a 5.40% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Company insiders own 0.98% of the company’s stock.
ArcBest News Roundup
Here are the key news stories impacting ArcBest this week:
- Positive Sentiment: ArcBest reported Q3 EPS of $2.62, ahead of analyst estimates, and revenue of $1.21 billion, also above expectations and up 15.5% year over year. Net income exceeded $51 million. The earnings beat and sales growth may support investor confidence. Higher shipment weights help ArcBest beat Q3 expectations
- Positive Sentiment: Higher shipment weights and Q3 tonnage gains helped drive the results. Executives also said the July reorganization is showing benefits, suggesting operational changes are contributing to the improved performance. ArcBest executives say July reorganization shows in solid third quarter results
- Neutral Sentiment: Recent valuation commentary is mixed: one article says ARCB may be undervalued after the earnings beat, while another questions its valuation following a 115% run. That disagreement may leave investors weighing strong results against how much good news is already reflected in the shares. ArcBest stock looks overvalued after its 115% run
- Negative Sentiment: Management indicated ABF Freight’s operating ratio could worsen by 50–150 basis points sequentially in Q4, a potential sign of near-term margin pressure. Asset-Light operating income is projected at $7 million to $10 million. ArcBest signals Q4 ABF operating ratio increase
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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