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ArcBest Q3 profit rises on pricing and cost savings

By Reuters News


Overview

  • Supply chain logistics firm's Q3 revenue rose 15% yr/yr, meeting analyst expectations

  • Adjusted EPS for Q3 increased yr/yr, reflecting improved operating performance

  • Company says higher earnings driven by pricing, productivity, and cost savings from restructuring


Outlook

  • ArcBest continues to invest in technology and innovation to support long-term profitable growth

  • ArcBest notes LTL industry pricing remains rational, with recent contract renewals averaging a 5.1% increase


Result Drivers

  • PRICING AND COST SAVINGS - Co said disciplined pricing and cost savings from restructuring drove higher earnings and margin

  • FREIGHT PROFILE SHIFT - Co attributed asset-based tonnage growth to heavier shipments, offset by fewer shipments per day

  • HIGHER REVENUE PER SHIPMENT - Asset-light segment revenue rose mainly due to higher revenue per shipment amid tightening capacity


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Revenue

Meet

$1.21 bln

$1.21 bln (12 Analysts)

Q3 Net Income

$51.66 mln


Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 9 "strong buy" or "buy", 6 "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the ground freight & logistics peer group is "buy"

  • Wall Street's median 12-month price target for ArcBest Corporation is $169.00, about 25.7% above its November 3 closing price of $134.48

  • The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 17 three months ago


Reuters Recommended Reads

  • Nov 3 - GXO Logistics Q3 revenue beats on strong organic growth

  • Nov 3 - Expeditors Q3 revenue beats estimates on airfreight demand

  • Nov 2 - Thailand's Fabrinet Q1 revenue jumps 51%, beats estimates on strong broad-based demand


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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