Freight Delivery Company ArcBest (NASDAQ: ARCB) will be reporting results this Wednesday before the bell. Here’s what you need to know.
ArcBest met analysts’ revenue expectations last quarter, reporting revenues of $998.8 million, up 3.3% year on year. It was a slower quarter for the company, with a miss of analysts’ EBITDA estimates.
Is ArcBest a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting ArcBest’s revenue to grow 15.7% year on year, a reversal from the 5.2% decrease it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. ArcBest has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at ArcBest’s peers in the transportation and logistics segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Knight-Swift Transportation delivered year-on-year revenue growth of 12.6%, beating analysts’ expectations by 2%, and Ryder reported revenues up 5%, topping estimates by 1.3%. Knight-Swift Transportation traded down 4.9% following the results while Ryder was also down 3.1%.
Read our full analysis of Knight-Swift Transportation’s results here and Ryder’s results here.
In the last twelve months or so, the market has shifted its attention from one area of macro importance to the next (AI disintermediation and AI capex spending to geopolitical conflict, rates, and whether the economy is on solid footing or not). While some of the transportation and logistics stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 3.3% on average over the last month. ArcBest is up 2.1% during the same time and is heading into earnings with an average analyst price target of $171.08 (compared to the current share price of $148.91).
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