ArcBest Shares Fall On Q3 Revenue Miss, Productivity Gains Can't Offset Shipment Decline

ArcBest Corp ARCB shares are trading lower after the company reported worse-than-expected third-quarter 2024 results.

The company reported a third-quarter revenue decline of 5.8% year over year to $1.06 billion, missing the consensus of $1.07 billion.

Sales by segments: Asset-Based $707.7 million (per-day decrease of 5.8%), and Asset-Light $385.3 million (per-day decrease of 9.6%).

Asset-based business total tonnage per day decreased by 11.3%, and total shipments per day fell by 0.7% Y/Y.

Pricing momentum continued in the quarter, driven by a 5.9% general rate increase on Sept. 9, and contract renewal increases of 4.6%. Overall, LTL industry pricing remains rational.

Meanwhile, Asset-Light revenues fell due to lower shipment rates and a higher mix of smaller managed transportation shipments. Shipments per day dipped, but productivity rose, with shipments per employee up 19.5% year over year. Soft freight and excess capacity continue to weigh on results.

Adjusted EBITDA from continuing operations declined to $86.404 million from $101.59 million a year ago.

Adjusted EPS was $1.64 compared to $2.31 a year ago, missing the consensus of $1.83.

ArcBest's operating cash flow for the nine months totaled $229.05 million, compared to $194.76 million a year ago. The company held cash and equivalents of $150.46 million as of the end of September.

"Over the past year, we have made substantial strides in controlling costs, improving productivity, and enhancing our service quality. These efforts contributed to ABF once again being recognized by Mastio for exceeding the industry benchmark for service," said Judy R. McReynolds, ArcBest chairman and CEO

Price Action: ARCB shares traded lower by 5.22% at $98.96 premarket at the last check Friday.

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