Sterne Agee Comments on Arkansas Best Corp

Sterne Agee has published a report on Arkansas Best Corporation ABFS. In the report, Sterne Agee wrote, " ABFS beats raised expectations. ABFS reported 2Q11 EPS $0.20, well above consensus EPS of $0.06. While the Company missed our $0.28 Street-high estimate, we were pleased with the 440 bps improvement in Operating Ratio to 98.2%. Focus on Yield drives the EPS upside. A year ago, the company reported a loss of $0.30 and an operating ratio of 102.6%. In 2010, the Company focused on volume over yield, but today management is more focused on yield improvements. Yields in 2Q11 improved an impressive 10%, well above 1Q's 2% increase. (1Q yields were depressed due to fuel recovery caps.) The Company continues to make progress on this front as yields in July are up 15% (8% ex fuel)." Sterne Agee rated Arkansas Best Corporation a BUY with a price target of $33.00. Arkansas Best Corporation closed Tuesday at $23.90.