ArcBest Corp. of Fort Smith (Nasdaq: ARCB) on Tuesday reported a first-quarter loss of $2.3 million, down from a profit of $71.3 million in the same quarter a year ago.
The loss includes a $21.6 million after-tax, noncash impairment charge related to ArcBest’s equity investment in remote driving startup Phantom Auto, which ceased operations in the quarter. ArcBest invested $25 million in Phantom Auto in 2022.
Per share, the first-quarter loss came to 10 cents, compared to a profit of $2.84 a year ago.
The results missed Wall Street expectations. The average estimate of seven analysts surveyed by Zacks Investment Research was for earnings of $1.54 per share.
The freight transportation and logistics company posted first-quarter revenue of $1.04 billion, down 7.7% from $1.12 billion a year ago, topping Street forecasts. Five analysts surveyed by Zacks expected $1.03 billion.
Shares of the company fell 15% Tuesday morning to $109.79. Year to date, shares were down 9.3%.
The company’s asset-based division reported revenue of $671.5 million, down from $697.8 million. Operating income for the quarter was $53.5 million, up from $47.5 million.
ArcBest said the division continued to adjust its freight mix in the quarter, which positively impacted productivity and contributed to an improved operating ratio.
The division reported daily shipments decreased 6.2% while daily shipment’s weight dropped 11.3%. Revenue per shipment increased 2.5%.
ArcBest’s asset-light division reported revenue of $396.4 million, down from $438.1 million a year ago. Operating income was a negative $15.3 million, down from a negative $14.1 million in the same quarter a year ago.
Revenue per shipment for the asset-light division dropped 19.7% compared to the same quarter of the previous year.
ArcBest said the biggest challenge to profitability came from lower rates and margins for truckload solutions. But increased productivity mitigated market softness as daily shipments per employee and cost per shipment both significantly improved on a year-over-year basis.
“Reflecting on the past quarter, I am proud of our employees for their commitment to excellence, which resulted in better customer service and operational efficiency gains,” CEO Judy McReynolds said in statement. “This commitment was also evident in our performance in this softer freight environment and the receipt of numerous customer and industry recognitions, including ABF’s recent receipt of the prestigious ATA Excellence in Security Award.”
The Associated Press contributed information to this report.
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