ArcBest Q3 profit rises on pricing and cost savings
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.)