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.
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