Arkansas Best Reports Weak 1Q Earnings (ABFS)

According to J.P. Morgan, Arkansas Best ABFS reported weak first quarter earnings with a loss of $0.51 per share, much lower than the forecasted loss of $0.33. J.P. Morgan suggests the reason for this was Arkansas Best's lack of focus on its pricing strategy which has been a challenge due to the bad economy and higher fuel surcharge caps. Morgan believes the solution lies in adopting a more aggressive pricing approach however; Morgan states “we do not believe that management is making significant changes to its broader approach with customers and on pricing.” Arkansas Best's target price was lowered from $22 to $20 and has a rating of Underweight. Arkansas Best is currently trading at $23.34.