Logistics Company ArcBest's Stock Tumbles Post Q1 Results: Here's Why

ArcBest Corp ARCB reported first-quarter fiscal 2024 revenue declined by 6.30% year-over-year to $1.036 billion, marginally ahead of the consensus of $1.033 billion.

Adjusted EPS was $1.34 compared to $1.58 a year ago, missing the consensus of $1.53.

The first-quarter net loss from continuing operations includes a $21.6 million after-tax, noncash impairment charge related to ArcBest’s equity investment in Phantom Auto, which ceased operations in the first-quarter of 2024.

Operating income from continuing operations was $24.435 million (+6% Y/Y), and the margin contracted by 25 bps to 2.2%.

Sales by segments: Asset-Based $671.467 million (-3.8% Y/Y), and Asset-Light $396.36 million (-9.5% Y/Y).  

Asset-based business total tonnage per day decreased by 16.8% Y/Y, and total shipments per day fell by 6.2%.

The company stated that the pricing momentum persisted during the quarter, buoyed by enhanced freight mix, increased pricing on transactional shipments, and a 5.3% rise in contract renewal rates.

Asset-Light results were impacted by lower revenue per shipment and reduced margins associated with changes in business mix and the soft rate environment. Shipments per day grew by 13.6% Y/Y.

Adjusted EBITDA from continuing operations decreased by 6.11% Y/Y to $73.33 million, and the margin was flat at 7.1%.

ArcBest’s cash provided by operating activities for the quarter totaled $6.467 million, compared to $20.66 million a year ago. 

ARCB held cash and equivalents of $172.855 million as of March-end.

ArcBest declared a quarterly cash dividend of $0.12 per share to holders of record on May 10 and payable on May 24.

Price Action: ARCB shares traded lower by 14.5% at $110.74 at the last check Tuesday.

Photo via Shutterstock