ArcBest Swings to Profitability in Q1, but Misses Wall Street Forecasts

Judy McReynolds, CEO of ArcBest (Michael Woods)

ArcBest Corp. of Fort Smith (Nasdaq: ARCB) on Tuesday reported a $3.1 million profit in the first quarter, improving on a loss of $2.3 million in the same period a year ago.

Earnings per share came to 13 cents, compared to a loss of 10 cents in the same quarter a year ago.

The results did not meet Wall Street expectations. The average estimate of seven analysts surveyed by Zacks Investment Research was for earnings of 52 cents per share.

The freight transportation and logistics company reported first-quarter quarter revenue of $967.1 million, down about 7% from $1.04 billion in the same quarter of 2024 and below Street forecasts. Five analysts surveyed by Zacks expected $981.6 million.

“I want to thank our employees for their commitment to excellence as they serve customers,” ArcBest CEO Judy McReynolds said in a statement. “Customers need trusted partners to help them navigate the ever-changing environment, and I’m proud of our employees for working hand-in-hand with customers to develop solutions, solve challenges and build trust.”

Shares of the company fell about 3% Tuesday morning to $57.33. Over the past 12 months, shares were down 55%.

The company’s asset-based division reported first-quarter revenue of $646.3 million, down 3.8% from $671.5 million. Quarterly operating income was $26.4 million, down 102.7% from $53.5 million.

ArcBest reported that the division’s shipments dropped less than one-half of one percent while revenue per shipment dropped 2.3%. The average weight per shipment was down 3.9% compared to a year ago.

The company’s asset-light logistics division reported revenue of $356 million, down 10.2%  from $396.4 million. Operating income was a loss of $4.4 million, an improvement from a loss of $15.3 million in the same quarter a year ago.

The division reported revenue per shipment dropped 5.9% while the number of shipments dropped 3.7%.