ArcBest Reports $63.7M Profit for Q3, Beats Earnings Expectations


ArcBest Reports $63.7M Profit for Q3, Beats Earnings Expectations
The ArcBest logo. The company beat Wall Street expectations for the third quarter of 2021. (ArcBest)

ArcBest Corp. of Fort Smith on Tuesday reported third-quarter profit of $63.7 million, up from $29.4 million in the same quarter a year ago.

The freight transportation and logistics company posted revenue for fiscal 2021 of $1.02 billion, which the company said was the best quarterly figure in its history.

The figure was a nearly 28% increase from the $794.9 million ArcBest reported in the third quarter of 2020

Earnings per share was $2.38, up from $1.11. ArcBest announced Monday that it was setting aside $100 million for a share buyback initiative; the company said this would be in addition to the $41.9 million it had available for buying back its shares.

“ArcBest continues to capitalize on the power of our integrated solutions to respond to today’s rapidly evolving market environment,” ArcBest CEO Judy McReynold said. “Our strategic vision, which is centered on accelerating growth through targeted investments in innovation, technology, logistics solutions and our people, continues to pay off.”

The company’s asset-based division reported revenue of $681.2 million, up from $561.9 million a year ago. Operating income was $83.6 million, up from $36.6 million.

The division reported a slight uptick of 0.5% in loads delivered but revenue per shipment was $542.38, up from $454.94.

ArcBest’s asset-light segments also reported increases. ArcBest, its logistics division, reported revenue of $305.2 million, up from $217.3 million, and operating income of $10.2 million, up from $4.3 million.

FleetNet, its maintenance division, reported revenue of $66.5 million, up from $50.5 million, and operating income of $1.3 million, up from $987,000.

ArcBest announced in September it was purchasing truckload freight brokerage MoLo Solutions LLC of Chicago in a $235 million cash deal. It announced Monday that the deal had been finalized.

“[Monday’s] closing of the MoLo Solutions acquisition is expected to build and amplify our powerful portfolio of shipping and logistics services to help our customers drive the economy forward and unlock incremental value for our shareholders,” McReynolds said. “Our proven ability to operate safely and efficiently while advancing our strategic vision and generating strong financial results is due to our team’s consistency and the trusted relationships they have built with our customers. Looking ahead, we are focused on continuing to successfully execute our growth strategy and creating sustainable value for our stakeholders, including our shareholders.”