Core Viewpoint - Transportation stocks are currently underperforming, with the Dow Jones Transportation Index up only 5% over the past six months compared to the S&P 500's 18% gain, suggesting a potential sell-off in this sector [1] Group 1: Transportation Stocks Overview - The transportation sector is sensitive to fuel price hikes, regulatory changes, and economic conditions, leading to a recommendation to consider selling transportation stocks [1] - Major transportation companies have missed earnings expectations despite a generally positive earnings season for corporate America [1] - The Biden administration's new rule for automatic cash refunds to airline passengers is negatively impacting the transportation sector [1] Group 2: Company-Specific Analysis Southwest Airlines (LUV) - Southwest Airlines experienced a strong recovery during the pandemic but is now facing rising labor costs and inflation, which have reduced its profitability margins [2] - The airline received only 20 jets this year instead of the forecasted 84, complicating its revenue growth efforts [2] - The company reported a significant miss in both top and bottom lines for Q1 earnings, indicating a challenging near-term outlook [2] JB Hunt (JBHT) - JB Hunt has missed earnings estimates in five out of the last six quarters, resulting in a year-to-date stock decline of over 14% [3][4] - The trucking industry is experiencing overcapacity, leading to intensified pricing pressures that are negatively affecting JB Hunt's bottom line [4] - The Intermodal segment is particularly struggling, with a 0.2% year-over-year drop in volume growth, indicating a loss of competitive edge [4] ArcBest (ARCB) - ArcBest's stock surged by 34% last year despite weak fundamentals, with net income dropping from $298.2 million to $195.4 million in 2023 [5][6] - The company reported a 3% year-over-year sales decline in Q1 amidst a softer freight environment, with total daily tonnage down by 16.8% [6] - The long-term strategies of ArcBest are unlikely to provide immediate relief, given the current operational challenges [5][6]

ArcBest (ARCB) is a Zacks Rank #5 (Strong Sell) as earnings estimates have tracked lower after a recent earnings miss.  The company is best known for its freight transportation services and solutions. This article will look at why this stock is a Zacks Rank #5 (Strong Sell) as it is the Bear of the Day.DescriptionArcBest Corporation provides freight transportation services and solutions. The company's Freight Transportation segment offers transportation of general commodities; motor carrier freight transpor ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended March 31, 2024 ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from to Commission file number 000-19969 ARCBEST CORPORATION (Exact name of registrant as specified in its charter) Delaware (State or other jurisdiction of in ...

Financial Data and Key Metrics Changes - ArcBest generated $1 billion in revenue for Q1 2024, a decrease of 6% compared to the previous year [13] - Non-GAAP operating income was $43 million, down from $52 million in Q1 2023, with adjusted earnings per share at $1.34, down from $1.58 [13] - The asset-based business maintained the same level of non-GAAP operating income as the previous year despite a 3% decrease in revenue per day [13][14] Business Line Data and Key Metrics Changes - The Asset-Light segment reported revenue of $396 million, a daily decrease of approximately 9% year-over-year, with shipments per day increasing by 14% but revenue per shipment decreasing by 20% [14] - The asset-based business had revenue of $672 million, a per day decrease of 3%, with a non-GAAP operating ratio of 92.0%, an improvement of 30 basis points year-over-year [15][16] - Tonnage per day decreased by 17% and daily shipments were 6% below prior year levels, although core LTL shipments and tonnage continued to grow [16] Market Data and Key Metrics Changes - Demand for services remains strong with a solid pipeline that has grown by 35% since the start of the year [9] - Preliminary results for April showed shipments per day trending higher by 10%, while revenue per shipment was down 18% [15] - The company achieved the highest on-time performance and network efficiency since 2021 despite severe weather conditions in January [9] Company Strategy and Development Direction - ArcBest is focused on a three-point strategy of accelerating growth, increasing efficiency, and driving innovation while managing costs effectively [8] - Strategic investments include opening new facilities to enhance productivity and operational efficiency, with a new facility in Olathe, Kansas already showing double-digit productivity improvements [10][23] - The company is committed to innovation, with the launch of the Box Suite FOX smart autonomy solution aimed at enhancing supply chain efficiencies [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate market softness and weather challenges, highlighting a strong commitment to operational excellence [9][11] - The management team remains optimistic about future growth opportunities, particularly in the core business, as they expect improvements in the truckload market and manufacturing economy [40][41] - The company anticipates that improvements in operating costs and productivity will position them well for the eventual recovery of the truckload brokerage market [15] Other Important Information - A noncash impairment charge related to the investment in Fantom Auto resulted in a $22 million reduction in net income [11] - The company has been recognized for its commitment to employee training and development, receiving accolades for its quality processes and operational excellence [20][24] Q&A Session Summary Question: How does the company balance price and volume as it enters an upcycle? - The company aims for both growth and appropriate pricing, utilizing a robust activity-based costing system to ensure profitability at both shipment and customer levels [30] Question: Will higher incremental margins be seen as volumes return? - Management believes there is significant operating leverage across both business segments, with expectations that revenue increases will largely contribute to the bottom line [33] Question: What is the outlook for tonnage and shipment levels? - Management indicated that significant changes in tonnage are expected as the market stabilizes, with more consistent results anticipated in the third quarter [37] Question: How does the company view the economic backdrop affecting core business? - The core business remains strong, with expectations for significant increases in core business as operational efficiency metrics continue to improve [45][46] Question: What is the company's strategy regarding technology investments? - The company distinguishes between pilot-stage investments and regular operational costs, indicating that ongoing technology investments are aimed at long-term improvements [50][52]

Earnings were weak as truckers continue to drive through a soft patch.A miserable earnings season for the trucking sector continued on Tuesday with results from ArcBest (ARCB -12.89%). Shares of the Arkansas-based transportation and logistics provider traded down 13% as of 2:30 p.m. ET following the release of its quarterly earnings report.A cool climate for demandArcBest investors were likely fearing the worst, ahead of the company's earnings release. A number of trucking stocks that have already reported, ...

For the quarter ended March 2024, ArcBest (ARCB) reported revenue of $1.04 billion, down 6.3% over the same period last year. EPS came in at $1.34, compared to $1.58 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $1.03 billion, representing a surprise of +0.97%. The company delivered an EPS surprise of -12.99%, with the consensus EPS estimate being $1.54.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expe ...

ArcBest (ARCB) came out with quarterly earnings of $1.34 per share, missing the Zacks Consensus Estimate of $1.54 per share. This compares to earnings of $1.58 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -12.99%. A quarter ago, it was expected that this freight transportation and logistics company would post earnings of $2.19 per share when it actually produced earnings of $2.47, delivering a surprise of 12.79%.Over the la ...

[Financial Highlights](index=1&type=section&id=Financial%20Highlights) ArcBest reported a Q1 2024 revenue decline and a GAAP net loss, primarily due to an impairment charge, with non-GAAP net income also decreasing Key GAAP Financial Highlights | Metric | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | **Revenue from Continuing Operations** | $1.0 billion | $1.1 billion | | **Operating Income from Continuing Operations** | $22.4 million | $21.2 million | | **Net (Loss) Income from Continuing Operations** | ($2.9 million) | $18.8 million | | **Diluted EPS from Continuing Operations** | ($0.12) | $0.75 | - The first quarter net loss from continuing operations includes a significant **$21.6 million** after-tax, noncash impairment charge related to the company's equity investment in Phantom Auto, which ceased operations during the quarter[2](index=2&type=chunk) Key Non-GAAP Financial Highlights | Non-GAAP Metric | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | **Operating Income from Continuing Operations** | $42.6 million | $51.9 million | | **Net Income from Continuing Operations** | $32.3 million | $39.5 million | | **Diluted EPS from Continuing Operations** | $1.34 | $1.58 | [Segment Performance](index=2&type=section&id=Segment%20Performance) The Asset-Based segment maintained Q1 2024 non-GAAP operating income despite lower revenue, contrasting with the Asset-Light segment's decline [Asset-Based Segment](index=2&type=section&id=Asset-Based) The Asset-Based segment reported lower Q1 2024 revenue but maintained non-GAAP operating income and improved its operating ratio Asset-Based Segment Key Metrics | Metric (YoY Change) | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Revenue (in millions) | $671.5 | $697.8 | | Total Tonnage Per Day | -16.8% | N/A | | Total Shipments Per Day | -6.2% | N/A | | Billed Revenue / CWT | +15.6% | N/A | | GAAP Operating Income (in millions) | $53.5 | $47.5 | | Non-GAAP Operating Income (in millions) | $53.5 | $53.5 | | Non-GAAP Operating Ratio | 92.0% | 92.3% | - Pricing momentum continued with contract renewal increases of **5.3%**, and the overall LTL industry pricing environment remains rational[6](index=6&type=chunk) - Sequentially, Q1 2024 performance was impacted by weather in January and fewer workdays in March, leading to an **8.4%** decrease in revenue per day compared to Q4 2023[7](index=7&type=chunk) [Asset-Light Segment](index=2&type=section&id=Asset-Light) The Asset-Light segment experienced decreased Q1 2024 revenue and a non-GAAP operating loss, primarily due to lower truckload rates and margins Asset-Light Segment Key Metrics | Metric | Q1 2024 (in millions) | Q1 2023 (in millions) | | :--- | :--- | :--- | | Revenue | $396.4 | $438.1 | | GAAP Operating Loss | ($15.3) | ($14.1) | | Non-GAAP Operating (Loss) Income | ($4.7) | $4.1 | | Adjusted EBITDA | ($2.9) | $6.0 | - Profitability challenges stemmed from lower rates and margins for truckload solutions, though this was partly mitigated by a **13.6%** increase in shipments per day and improved SG&A cost per shipment[9](index=9&type=chunk) - The Q1 non-GAAP operating loss was primarily due to performance in January, affected by weather events causing higher purchased transportation costs, with improvements seen through the rest of the quarter[10](index=10&type=chunk) [Consolidated Financial Statements](index=7&type=section&id=Consolidated%20Financial%20Statements) ArcBest's Q1 2024 consolidated financials show revenue decline, a GAAP net loss from a non-operating charge, decreased assets, and lower operating cash flow [Consolidated Statements of Operations](index=7&type=section&id=Consolidated%20Statements%20of%20Operations) Q1 2024 revenues decreased to $1.04 billion, resulting in a net loss from continuing operations due to a significant 'Other, net' cost Consolidated Statements of Operations (in thousands) | (In thousands) | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | **Revenues** | $1,036,419 | $1,106,094 | | **Operating Income** | $22,435 | $21,159 | | **Net (Loss) Income from Continuing Operations** | ($2,912) | $18,847 | | **Diluted EPS from Continuing Operations** | ($0.12) | $0.75 | [Consolidated Balance Sheets](index=8&type=section&id=Consolidated%20Balance%20Sheets) As of March 31, 2024, total assets decreased to $2.36 billion, primarily from reduced cash, with stockholders' equity also slightly declining Consolidated Balance Sheet Summary (in thousands) | (In thousands) | March 31, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | **Total Current Assets** | $758,478 | $884,783 | | **Total Assets** | $2,357,143 | $2,485,094 | | **Total Current Liabilities** | $618,575 | $701,563 | | **Total Stockholders' Equity** | $1,222,733 | $1,242,363 | [Consolidated Statements of Cash Flows](index=9&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Q1 2024 net cash from operating activities significantly decreased to $6.5 million, with net cash used in investing and financing activities Consolidated Statements of Cash Flows Summary (in thousands) | (In thousands) | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | **Net Cash Provided by Operating Activities** | $6,467 | $20,663 | | **Net Cash (Used in) Provided by Investing Activities** | ($56,993) | $70,960 | | **Net Cash Used in Financing Activities** | ($38,845) | ($46,676) | | **Net (Decrease) Increase in Cash** | ($89,371) | $44,947 | [Segment Financial Data and Operating Ratios](index=11&type=section&id=Segment%20Financial%20Data%20and%20Operating%20Ratios) This section details Q1 2024 segment revenues, operating income/loss, and operating ratios for Asset-Based and Asset-Light segments Q1 2024 Segment Financial Data (in millions) | Segment (Q1 2024) | Revenue (in millions) | Operating Income (Loss) (in millions) | Operating Ratio | | :--- | :--- | :--- | :--- | | **Asset-Based** | $671.5 | $53.5 | 92.0% | | **Asset-Light** | $396.4 | ($15.3) | 103.8% | Q1 2023 Segment Financial Data (in millions) | Segment (Q1 2023) | Revenue (in millions) | Operating Income (Loss) (in millions) | Operating Ratio | | :--- | :--- | :--- | :--- | | **Asset-Based** | $697.8 | $47.5 | 93.2% | | **Asset-Light** | $438.1 | ($14.1) | 103.2% | [GAAP to Non-GAAP Reconciliations](index=12&type=section&id=GAAP%20to%20Non-GAAP%20Reconciliations) This section reconciles GAAP to non-GAAP financial measures, adjusting for non-core items to provide a clearer view of operating performance - Management believes non-GAAP measures provide meaningful comparisons by removing items that do not reflect core operating performance, such as acquisition-related costs and one-time charges[24](index=24&type=chunk) - Major non-GAAP adjustments for Q1 2024 include: innovative technology costs (**$9.7 million** pre-tax), purchase accounting amortization (**$3.2 million** pre-tax), change in fair value of contingent consideration (**$7.3 million** pre-tax), and a change in fair value of an equity investment (**$28.7 million** pre-tax)[25](index=25&type=chunk)[30](index=30&type=chunk) [Consolidated Non-GAAP Reconciliations](index=12&type=section&id=Consolidated%20Non-GAAP%20Reconciliations) Q1 2024 consolidated GAAP operating income was adjusted to **$42.6 million** non-GAAP, with net loss reconciled to **$32.3 million** non-GAAP net income Consolidated Operating Income Reconciliation (in thousands) | Reconciliation (Q1 2024, in thousands) | Amount | | :--- | :--- | | **GAAP Operating Income** | **$22,435** | | Adjustments | $20,210 | | **Non-GAAP Operating Income** | **$42,645** | Consolidated Net Income Reconciliation (in thousands) | Reconciliation (Q1 2024, in thousands) | Amount | | :--- | :--- | | **GAAP Net Loss** | **($2,912)** | | Adjustments | $35,229 | | **Non-GAAP Net Income** | **$32,317** | [Segment Non-GAAP Reconciliations](index=13&type=section&id=Segment%20Non-GAAP%20Reconciliations) Q1 2024 Asset-Based segment had no non-GAAP adjustments, while Asset-Light's GAAP operating loss was adjusted to a non-GAAP loss Asset-Based Segment Operating Income Reconciliation (in thousands) | Asset-Based Segment (Q1 2024) | Operating Income (in thousands) | Operating Ratio | | :--- | :--- | :--- | | **GAAP** | $53,456 | 92.0% | | **Non-GAAP** | $53,456 | 92.0% | Asset-Light Segment Operating Loss Reconciliation (in thousands) | Asset-Light Segment (Q1 2024) | Operating Loss (in thousands) | Operating Ratio | | :--- | :--- | :--- | | **GAAP** | ($15,258) | 103.8% | | Adjustments | $10,512 | (2.6%) | | **Non-GAAP** | ($4,746) | 101.2% | [Adjusted EBITDA Reconciliation](index=15&type=section&id=Adjusted%20EBITDA%20Reconciliation) Q1 2024 consolidated Adjusted EBITDA decreased to **$73.3 million**, with the Asset-Light segment reporting a negative Adjusted EBITDA Adjusted EBITDA from Continuing Operations (in millions) | Adjusted EBITDA from Continuing Operations | Q1 2024 (in millions) | Q1 2023 (in millions) | | :--- | :--- | :--- | | **Consolidated** | $73.3 | $78.1 | | **Asset-Light** | ($2.9) | $6.0 | [Operating Statistics](index=17&type=section&id=Operating%20Statistics) Q1 2024 Asset-Based segment saw decreased tonnage and shipments but increased billed revenue per hundredweight, while Asset-Light saw decreased revenue per shipment but increased daily shipments Asset-Based Segment Operating Statistics | Asset-Based Statistics | Q1 2024 | Q1 2023 | % Change | | :--- | :--- | :--- | :--- | | Billed Revenue / CWT | $48.56 | $41.99 | 15.6% | | Shipments / Day | 19,566 | 20,856 | (6.2%) | | Tons / Day | 10,937 | 13,149 | (16.8%) | Asset-Light Segment Operating Statistics | Asset-Light Statistics (YoY % Change) | Q1 2024 | | :--- | :--- | | Revenue / Shipment | (19.7%) | | Shipments / Day | 13.6% | [Additional Information](index=4&type=section&id=Additional%20Information) This section provides investor conference call details, an overview of ArcBest, and a safe harbor statement on forward-looking statements and risks - A conference call to discuss Q1 2024 results was scheduled for April 30, 2024, at **9:30 a.m. EDT**[11](index=11&type=chunk) - ArcBest is a multibillion-dollar integrated logistics company founded in **1923**, with **15,000 employees** across **250 locations**[12](index=12&type=chunk) - The press release contains forward-looking statements subject to risks and uncertainties, as detailed in the company's SEC filings, cautioning readers not to place undue reliance[14](index=14&type=chunk)[15](index=15&type=chunk)

Investors are always looking for stocks that are poised to beat at earnings season and ArcBest Corporation (ARCB) may be one such company. The firm has earnings coming up pretty soon, and events are shaping up quite nicely for their report.That is because ArcBest is seeing favorable earnings estimate revision activity as of late, which is generally a precursor to an earnings beat. After all, analysts raising estimates right before earnings — with the most up-to-date information possible — is a pretty good i ...

Have you been searching for a stock that might be well-positioned to maintain its earnings-beat streak in its upcoming report? It is worth considering ArcBest (ARCB) , which belongs to the Zacks Transportation - Truck industry.When looking at the last two reports, this freight transportation and logistics company has recorded a strong streak of surpassing earnings estimates. The company has topped estimates by 30.91%, on average, in the last two quarters.For the most recent quarter, ArcBest was expected to ...