ArcBest Q2 revenue rises 16% on higher weight per shipment

Overview

• U.S. supply chain logistics firm's Q2 revenue rose, slightly beating analyst expectations

• Adjusted EPS for Q2 rose yr/yr, excluding impairment and restructuring charges

• Company posted a Q2 net loss due to impairment and restructuring charges

Outlook

• Company says progress on pricing, cost management and efficiency initiatives to continue

• ArcBest notes a more constructive operating environment for logistics and supply chain services

• Company continues to invest in technology and operating efficiency to support future growth

Result Drivers

• ASSET-BASED REVENUE GROWTH - Revenue rose due to higher weight per shipment and increased fuel surcharge revenue, partially offset by fewer shipments per day

• ASSET-LIGHT VOLUME AND PRICING - Revenue increased primarily due to higher shipment volumes and higher revenue per shipment, reflecting higher fuel prices and a tightening capacity environment

• COST MANAGEMENT AND PRODUCTIVITY - Improved non-GAAP operating income attributed to disciplined cost management and productivity improvements

Company press release: ID:nBw1pGtPfa

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 8 "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 Corp (Texas) is $175.50, about 17.4% above its July 28 closing price of $149.48

• The stock recently traded at 19 times the next 12-month earnings vs. a P/E of 19 three months ago

Reuters Recommended Reads

• July 28 - Landstar Q2 revenue beats estimates as freight transportation market "rapidly" improves

• July 28 - Werner Q2 revenue rises on TTS growth, FirstFleet acquisition

• July 28 - UPS hikes full-year forecasts after Amazon delivery reductions, shares drop on investor skepticism

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(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.)