Arkansas Best Corp Third Quarter Earnings Sneak Peek

Arkansas Best Corporation (NASDAQ:ABFS) will unveil its latest earnings on Tuesday, October 30, 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 net income of 25 cents per share, a decline of 47.9% 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 44 cents. Between one and three months ago, the average estimate moved down. It also has dropped from 31 cents during the last month. Analysts are projecting net loss of 15 cents per share versus profit of 26 cents last year.

Past Earnings Performance: The company beat estimates last quarter after falling short in the prior two. In the second quarter, the company reported net income of 18 cents per share versus a mean estimate of profit of 16 cents per share. In the first quarter, the company missed estimates by 53 cents.

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A Look Back: In the second quarter, profit rose more than twofold to $11.8 million (44 cents a share) from $5.3 million (20 cents a share) the year earlier, exceeding analyst expectations. Revenue rose 2.4% to $510.5 million from $498.6 million.

Stock Price Performance: Between July 31, 2012 and October 24, 2012, the stock price fell $5.94 (-43.4%), from $13.69 to $7.75. 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.

Wall St. Revenue Expectations: On average, analysts predict $566.6 million in revenue this quarter, a rise of 10.9% from the year-ago quarter. Analysts are forecasting total revenue of $2.05 billion for the year, a rise of 7.3% from last year’s revenue of $1.91 billion.

Key Stats:

On the top line, the company is looking to build on four-straight revenue increases heading into this earnings announcement. Revenue rose 14.7% in the third quarter of the last fiscal year, 5% in the fourth quarter of the last fiscal year and 1.4% in the first quarter before increasing again in the second quarter.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.25 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 1.61 in the first quarter to the last quarter driven in part by an increase in liabilities. Current liabilities increased 19.2% to $319.5 million while assets decreased 7.4% to $398.5 million.

Analyst Ratings: There are mostly holds on the stock with 11 of 15 analysts surveyed giving that rating.

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

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