Arkansas Best Corp Second Quarter Earnings Sneak Peek

Arkansas Best Corporation (NASDAQ:ABFS) will unveil its latest earnings on Tuesday, July 31, 2012. Arkansas Best is a holding company that, through its subsidiaries, is engaged in motor carrier transportation operations.

Arkansas Best Corporation Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for profit of 16 cents per share, a decline of 20% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from 30 cents. Between one and three months ago, the average estimate moved down. It also has dropped from 17 cents during the last month. For the year, analysts are projecting net income of 15 cents per share, a decline of 42.3% from last year.

Past Earnings Performance: The company is looking to top analyst estimates this quarter after trailing for the two previous quarters. Last quarter, it missed estimates by reporting a loss of 71 cents per share against an estimate of net loss of 18 cents per share. The quarter before that, it missed expectations by 17 cents.

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A Look Back: In the first quarter, the company’s loss widened to a loss of a $18.2 million (71 cents a share) from a loss of $12.8 million (51 cents) a year earlier, missing analyst expectations. Revenue rose 1.4% to $440.9 million from $434.9 million.

Stock Price Performance: Between April 30, 2012 and July 25, 2012, the stock price fell $4.21 (-27.4%), from $15.34 to $11.13. The stock price saw one of its best stretches over the last year between January 4, 2012 and January 12, 2012, when shares rose for seven straight days, increasing 7.6% (+$1.50) over that span. It saw one of its worst periods between May 2, 2012 and May 15, 2012 when shares fell for 10 straight days, dropping 16.2% (-$2.52) over that span.

Analyst Ratings: There are mostly holds on the stock with 10 of 14 analysts surveyed giving that rating.

Key Stats:

On the top line, the company is looking to build on four-straight revenue increases heading into this earnings announcement. Revenue rose 21.2% in the second quarter of the last fiscal year, 14.7% in the third quarter of the last fiscal year and 5% in the fourth quarter of the last fiscal year before increasing again in the first quarter.

Wall St. Revenue Expectations: On average, analysts predict $508.2 million in revenue this quarter, a rise of 1.9% from the year-ago quarter. Analysts are forecasting total revenue of $2.02 billion for the year, a rise of 5.8% from last year’s revenue of $1.91 billion.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.61 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, for every dollar the company owes in the short term, it has that figure available in assets that can be converted to cash in the short term. The company regressed in this liquidity measure from 1.69 in the fourth quarter of the last fiscal year to the last quarter driven in part by a decrease in current assets. Current assets decreased 3.3% to $430.5 million while liabilities rose by 1.6% to $268 million.

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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

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