ArcBest Q2 Profit Beats Wall Street Expectations


ArcBest Q2 Profit Beats Wall Street Expectations
(Kat Wilson)

ArcBest Corp. of Fort Smith reported Monday second-quarter revenue of $949 million.

The company said the revenue figure was the highest in its history and was a significant increase from the $627.4 million it reported in the same quarter of fiscal 2020. It surpassed the average estimate of $919.8 million of three analysts surveyed by Zacks Investments Research.

Income for the quarter was $61 million, an increase from $15.9 million in the same quarter a year ago. Earnings per share was $2.27, up from 61 cents, and surpassed the average estimate of $1.60 by six analysts surveyed by Zacks.

“We’re very pleased to report record results for the second consecutive quarter,” ArcBest CEO Judy McReynolds said. “Our strong results for the first half of 2021 reflect our tireless execution in a period of extremely tight capacity and high demand. We put the customer at the center of everything we do, and we’re seeing our approach pay off as we work alongside shippers and capacity providers to solve their complex challenges.”

ArcBest’s asset-based segment reported revenue of $652.8 million, up from $460.1 million. Operating income was $63.9 million, up from $21 million.

The segment reported 1.25 million shipments, up from 1.1 million shipments, and revenue per shipment was $523.33, an increase from $423.39.

The company’s two asset-light segments reported increases, as well. ArcBest, the company’s logistics division, reported revenue of $270.7 million, up from $151.5 million, and operating income of $15.1 million, up from $1.3 million.

FleetNet, the company’s maintenance division, reported revenue of $59.5 million, up from $46.4 million, and operating income of $1.1 million, up from $782,000.

“We are experiencing a strong start to 2021 and I’m proud of the work our leaders and employees are doing on behalf of our customers as their businesses normalize,” McReynolds said. “Providing assured capacity is a shared mindset of employees across our organization.”

(The Associated Press contributed to this report.)