Arkansas Best Earnings: Here’s Why Investors are Selling Shares Now

Arkansas Best Corporation (NASDAQ:ABFS) had a loss and missed Wall Street’s expectations, BUT beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are down 0.35%.

Markets are at 5-year highs! Discover the best stocks to own. Click here for our fresh Feature Stock Pick now!

Arkansas Best Corporation Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased to $-0.52 in the quarter versus EPS of $-0.71 in the year-earlier quarter.

Revenue: Rose 18.11% to $520.7 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Arkansas Best Corporation reported adjusted EPS loss of $0.52 per share. By that measure, the company missed the mean analyst estimate of $-0.41. It beat the average revenue estimate of $518.68 million.

Quoting Management: “First quarter revenue and operating income at our emerging businesses reflected growth and improvement as we invested heavily in these businesses during 2012. They represent a critical piece of Arkansas Best’s strategy to achieve sustained profitability,” said Arkansas Best President and Chief Executive Officer Judy R. McReynolds. “The investments made so far have improved the financial performance of these subsidiaries and strengthened their service offerings and their ability, both individually and through significant cross-selling opportunities, to better serve customers with full supply-chain solutions.”

Key Stats (on next page)…

Revenue decreased 3.04% from $537.04 million in the previous quarter. EPS decreased to $-0.52 in the quarter versus EPS of $-0.31 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.27 to a profit $0.25. For the current year, the average estimate has moved down from a profit of $0.58 to a profit of $0.30 over the last ninety days.

Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute – click here and get our CHEAT SHEET stock picks now.

(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at]