Arkansas Best Earnings Cheat Sheet: A Return to Profitability

Arkansas Best Corporation (NASDAQ:ABFS) climbed to a profit in the second quarter and beat Wall Street’s expectations in the process. Arkansas Best Corporation is a holding company through its subsidiaries is engaged in motor carrier transportation operations.

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Arkansas Best Earnings Cheat Sheet for the Second Quarter

Results: Swung to a profit of $5.3 million (20 cents per diluted share) in the quarter. Arkansas Best Corporation had a net loss of $7.4 million or a loss 30 cents per share in the year earlier quarter.

Revenue: Rose 21.2% to $498.6 million from the year earlier quarter.

Actual vs. Wall St. Expectations: ABFS beat the mean analyst estimate of 5 cents per share. It beat the average revenue estimate of $487.7 million.

Quoting Management: “We are pleased with the improvement in our company’s performance and the steps we have taken toward restoring Arkansas Best’s historical profit margins,” said Judy R. McReynolds, Arkansas Best President and Chief Executive Officer. “However, the progress made so far does not produce sufficient returns for our shareholders nor does it allow us to adequately recapitalize our business. Further profitability gains should result from improved pricing on ABF’s existing account base and from continuing efforts to achieve a more competitive cost structure. Our focus on growing business with customers who value ABF’s high level of service and wide range of logistics offerings should also positively impact our profitability.”

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 17.2%, with the biggest boost coming in the most recent quarter when revenue rose 21.2% from the year earlier quarter.

The company beat estimates last quarter after falling short in the previous two quarters. In the first quarter, it missed the mark by 30 cents, and in the fourth quarter of the last fiscal year, it fell short by 3 cents.

ABFS’ profit in the latest quarter follows losses in the three previous quarters. The company reported a net loss of $12.8 million in the first quarter, a loss of $3.1 million in the fourth quarter of the last fiscal year and a loss of $749,000 in the third of the last fiscal year.

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), USA Truck, Inc. (NASDAQ:USAK) and Celadon Group, Inc. (NYSE:CGI).

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(Source: Xignite Financials)