Arkansas Best Corp Earnings Cheat Sheet: Beats Estimates with a Swing Up

Arkansas Best Corporation (NASDAQ:ABFS) reported its results for the third quarter. Arkansas Best is a holding company that, through its subsidiaries, is engaged in motor carrier transportation operations.

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Arkansas Best Earnings Cheat Sheet for the Third Quarter

Results: Reported a profit of $12.3 million (46 cents per diluted share) in the quarter. The trucking company had a net loss of $749,000 or a loss of 3 cents per share in the year earlier quarter.

Revenue: Rose 14.7% to $510.9 million from the year earlier quarter.

Actual vs. Wall St. Expectations: ABFS beat the mean analyst estimate of 33 cents per share. Analysts were expecting revenue of $501.1 million.

Quoting Management: “We are pleased to report another quarter of profitability resulting from the value and superior service that ABF offers in the marketplace. The ABF team is to be congratulated for producing better results in the face of an uncertain economic environment,” said Judy R. McReynolds, Arkansas Best President and Chief Executive Officer. “In looking ahead, we are prepared to appropriately adjust resources to business levels while maintaining a high level of service for our customers. Our blend of investments in people and technology as well as the unique logistics services provided to our customers put us in a good position as we cultivate opportunities for future growth and new offerings.”

Key Stats:

The company has enjoyed double-digit year-over-year percentage revenue growth for the past five quarters. Over that span, the company has averaged growth of 17.4%, with the biggest boost coming in the second quarter when revenue rose 21.2% from the year earlier quarter.

The company has now beaten estimates the last two quarters. In the second quarter, it topped expectations with net income of 20 cents versus a mean estimate of net income of 5 cents per share.

Looking Forward: Expectations for the company’s next quarter performance are higher than they were ninety days ago. Over the past three months, the average estimate for the fourth quarter has risen to 23 cents per share from 14 cents. For the fiscal year, the average estimate has moved up from a loss of 7 cents a share to a profit of 25 cents over the last ninety days.

Competitors to Watch: YRC Worldwide Inc. (NASDAQ:YRCW), Saia Inc. (NASDAQ:SAIA), Con-way Inc. (NYSE:CNW), J.B. Hunt Transport Services, Inc. (NASDAQ:JBHT), Roadrunner Transportation Services Hold. (NYSE:RRTS), Old Dominion Freight Line (NASDAQ:ODFL), Velocity Express Corp. (VEXPQ), USA Truck, Inc. (NASDAQ:USAK), AutoInfo, Inc. (AUTO), and Celadon Group, Inc. (NYSE:CGI).

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(Source: Xignite Financials)