Arkansas Best Earnings: Here’s Why Investors are Dumping Shares Now
Arkansas Best Corporation (NASDAQ:ABFS) had a loss and missed Wall Street’s expectations, BUT beat the revenue expectation. Shares are down 5.6%.
Arkansas Best Corporation Earnings Cheat Sheet
Results: Net loss increased to $5.5 million (22 cents per diluted share) in the quarter versus a net gain of $1.4 million in the year-earlier quarter.
Revenue: Rose 15.92% to $537 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: Arkansas Best Corporation reported adjusted net loss of 22 cents per share. By that measure, the company missed the mean analyst estimate of -$0.4. It beat the average revenue estimate of $524.17 million.
Quoting Management: CEO McReynolds added that the full-year loss at ABF resulting in a 2012 operating ratio above 100, following a slightly profitable 2011, was troubling as total revenues remained about even with annual yield improvement offset by lower business levels. “We are focused on a return to profitability at ABF by substantially lowering our costs in the next labor contract through negotiations that are now underway. ABF’s management team is hopeful it will reach an agreement with the Teamsters that allows us to preserve good-paying jobs and protect our employees’ retirements through a lower cost structure that truly reflects the competitive nature of today’s LTL marketplace.”
Revenue decreased 7.02% from $577.55 million in the previous quarter. Net loss increased to $5.5 million in the quarter versus a net income of $6.52 million in the previous quarter.
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(Company fundamentals provided by Xignite Financials.)