Deutsche Bank Maintains Hold on Arkansas Best

Deutsche Bank is out with its report today on Arkansas Best ABFS, maintaining Hold. In its report, Deutsche Bank writes, "Yesterday, ABFS reported Q2 EPS of $0.20 above both our estimate of $0.10 and Consensus of $0.05. Upside was driven by better-than-expected pricing with yields (gross of fuel) up 9.5% y/y, improved cost controls, and tonnage growth (up 9.9% y/y in Q2). While we see further margin improvement in H2, the tailwind from tonnage growth may moderate as tonnage decelerated throughout Q2 continuing into July (up 1% y/y). With cost and labor inflation accelerating, earnings growth likely slows in H2 vs. Q2. HOLD." Shares of ABFS closed Wednesday at $23.58, down 1.21% from Tuesday's close.