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ArcBest Corporation (ARCB - Free Report) performed impressively in the fourth quarter of 2018, wherein both earnings and revenues surpassed the respective Zacks Consensus Estimate.
The company’s earnings (excluding 43 cents from non-recurring items) of $1.01 per share surpassed the Zacks Consensus Estimate by 9 cents and increased significantly year over year. Effective tax rate (on an adjusted basis) declined to 26.2% in the reported quarter from 34.9% a year ago, thereby aiding the bottom line.
Total revenues came in at $774.3 million, which outpaced the Zacks Consensus Estimate of $769 million. Moreover, the top line increased 8.9 % from the year-ago quarter number on the back of higher revenues at the asset-based and asset-light segments.
Segmental Performance
Robust freight demand boosted the company’s asset-based business, which accounted for bulk of the top line (70.9%) in fourth-quarter 2018. At the segment, revenues came in at $548.9 million, reflecting an increase of 10.4% per day. Tonnage per day increased 2.8%, while shipments per day climbed 4.2%.
Total billed revenue per hundredweight on asset-based shipments increased 7.9% driven by higher fuel surcharges. LTL (Less than truckload)-rated freight increased in mid-single digits, percentagewise, on excluding fuel surcharge. Backed by greater efficiencies, the segment’s operating ratio (operating expenses as a percentage of revenues) improved 280 basis points to 93.3%. Notably, lower the value of the ratio the better.
The asset-light segment also performed well, with total revenues improving 9.7% per day to $243.8 million. Segmental results were aided by increased revenue per shipment among other factors. Adjusted operating income rose 41.8% to $7.8 million in the reported quarter.
ArcBest Corporation Price, Consensus and EPS Surprise
For 2019, ArcBest expects net capital expenditures in the range of $170-$180 million, higher than the 2018 figure of $134 million. The upside can be attributed to expenses pertaining to real estate projects, dock equipment and technology-related investments.
Upcoming Releases
Investors interested in the broader Transportation sector are keenly awaiting quarterly results from key players like Copa Holdings (CPA - Free Report) , Expeditors International of Washington (EXPD - Free Report) and Hertz Global Holdings (HTZ - Free Report) . While Copa Holdings will report fourth-quarter earnings on Feb 13, Expeditors and Hertz Global Holdings will release the same on Feb 19 and Feb 25, respectively.
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It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Image: Bigstock
ArcBest's (ARCB) Q4 Earnings Surpass Estimates, Increase Y/Y
ArcBest Corporation (ARCB - Free Report) performed impressively in the fourth quarter of 2018, wherein both earnings and revenues surpassed the respective Zacks Consensus Estimate.
The company’s earnings (excluding 43 cents from non-recurring items) of $1.01 per share surpassed the Zacks Consensus Estimate by 9 cents and increased significantly year over year. Effective tax rate (on an adjusted basis) declined to 26.2% in the reported quarter from 34.9% a year ago, thereby aiding the bottom line.
Total revenues came in at $774.3 million, which outpaced the Zacks Consensus Estimate of $769 million. Moreover, the top line increased 8.9 % from the year-ago quarter number on the back of higher revenues at the asset-based and asset-light segments.
Segmental Performance
Robust freight demand boosted the company’s asset-based business, which accounted for bulk of the top line (70.9%) in fourth-quarter 2018. At the segment, revenues came in at $548.9 million, reflecting an increase of 10.4% per day. Tonnage per day increased 2.8%, while shipments per day climbed 4.2%.
Total billed revenue per hundredweight on asset-based shipments increased 7.9% driven by higher fuel surcharges. LTL (Less than truckload)-rated freight increased in mid-single digits, percentagewise, on excluding fuel surcharge. Backed by greater efficiencies, the segment’s operating ratio (operating expenses as a percentage of revenues) improved 280 basis points to 93.3%. Notably, lower the value of the ratio the better.
The asset-light segment also performed well, with total revenues improving 9.7% per day to $243.8 million. Segmental results were aided by increased revenue per shipment among other factors. Adjusted operating income rose 41.8% to $7.8 million in the reported quarter.
ArcBest Corporation Price, Consensus and EPS Surprise
ArcBest Corporation Price, Consensus and EPS Surprise | ArcBest Corporation Quote
2019 CapEx Outlook
For 2019, ArcBest expects net capital expenditures in the range of $170-$180 million, higher than the 2018 figure of $134 million. The upside can be attributed to expenses pertaining to real estate projects, dock equipment and technology-related investments.
Upcoming Releases
Investors interested in the broader Transportation sector are keenly awaiting quarterly results from key players like Copa Holdings (CPA - Free Report) , Expeditors International of Washington (EXPD - Free Report) and Hertz Global Holdings (HTZ - Free Report) . While Copa Holdings will report fourth-quarter earnings on Feb 13, Expeditors and Hertz Global Holdings will release the same on Feb 19 and Feb 25, respectively.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Click here for the 6 trades >>