ArcBest Posts Strong Q3, Eyes Annual Revenue Milestone

ArcBest Posts Strong Q3, Eyes Annual Revenue Milestone
Judy McReynolds, CEO of ArcBest Corp. of Fort Smith (Photo courtesy of ArcBest)

ArcBest Corp. of Fort Smith (Nasdaq: ARCB) on Tuesday reported that it's on track to hit $5 billion in annual revenue for the first time in company history.

Revenue in the third quarter was $1.35 billion, up more than 32% from $1.02 billion in the same quarter a year ago.

Operating income in the quarter totaled $115.76 million, up 32% compared to $87.56 million a year ago.

Net income rose to $88.8 million, up more than 39% from $63.69 million. 

On a per-share basis, the transportation and logistics company said it had net income of $3.50. Earnings, adjusted for one-time gains and costs, were $3.80 per share.

The results beat Wall Street expectations. The average estimate of five analysts surveyed by Zacks Investment Research was for earnings of $3.75 per share.

"Despite a more challenging economic environment, we continue to invest in our team, solutions and facilities ... We are confident that future growth opportunities remain bright as we work to achieve our long-term financial targets," President and CEO Judy McReynolds said in a news release.

The company's asset-based operations saw customer demand soften but remain at a "good level" in the quarter, with revenue rising about 16% to $791.53 million. ArcBest reported shipments increased 2.8% in the quarter to 1.3 million, while revenue per shipment jumped nearly 13% from $542.38 to $611.70.

Total billed revenue per hundredweight increased 11.1% and was positively impacted by higher fuel surcharges.

The company’s logistics division, ArcBest, reported revenue of $515.24 million, up from $305.21 million. Operating income was $15.38 million, up from $10.18 million.

At FleetNet, the company's maintenance division, year-over-year profit in the quarter fell from $1.27 million to $881,000, despite revenue growth resulting from increases in both total events and revenue per event. 

Revenue in ArcBest's asset-light operations, the combined results of logistics and FleetNet, moderated due to a "softer economic environment," the company said. ArcBest said additional truckload business from MoLo Solutions LLC, the freight brokerage it acquired last year, was the main contributor to increased revenue and shipment totals in the quarter.

The Associated Press contributed information to this report.

More On This Story