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ArcBest Corporation (ARCB)
NASDAQ:ARCB

ArcBest (ARCB) AI Stock Analysis

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ArcBest

(NASDAQ:ARCB)

Rating:73Outperform
Price Target:
$70.00
▲(0.59%Upside)
ArcBest demonstrates solid financial stability and attractive valuation metrics. However, mixed technical signals and challenges highlighted in the earnings call moderate the overall score. Strategic improvements and economic recovery could enhance future performance.
Positive Factors
Earnings Outlook
ARCB slightly raised its target for 2Q25 operating profit in the Asset-Light segment, led by productivity focus.
Financial Performance
Broad-based gains in its core less-than-truckload (LTL) business with new and existing customers led to outperforming seasonal trends.
Operational Strategy
ARCB remains focused on optimizing its cost structure with labor planning tools, linehaul insourcing, and facility enhancement investments.
Negative Factors
Earnings Performance
ArcBest posted adjusted 1Q25 EPS of $0.51, down 62% from $1.34 a year ago, below analyst expectations, yet in-line with the Street.
Market Concerns
The analyst reiterates an Underperform rating on ARCB and lowers the price objective to $58, citing market concerns and pricing pressure.
Revenue Decline
Revenue declines accelerated in April, driven by an increase in shipments from customers with easier-to-handle freight which generally have a lower yield profile.

ArcBest (ARCB) vs. SPDR S&P 500 ETF (SPY)

ArcBest Business Overview & Revenue Model

Company DescriptionArcBest Corporation provides freight transportation and integrated logistics services. It operates through three segments: Asset-Based, ArcBest, and FleetNet. The Asset-Based segment transports general commodities, such as food, textiles, apparel, furniture, appliances, chemicals, nonbulk petroleum products, rubber, plastics, metal and metal products, wood, glass, automotive parts, machinery, and miscellaneous manufactured products through less-than-truckload services. It also offers motor carrier freight transportation services to customers in Mexico through arrangements with trucking companies. The ArcBest segment provides expedite freight transportation services to commercial and government customers; premium logistics services, such as deployment of specialized equipment to meet linehaul requirements; and international freight transportation with air, ocean, and ground services. It also offers third-party transportation brokerage services by sourcing various capacity solutions, including dry van over the road and intermodal, temperature-controlled and refrigerated, flatbed, intermodal or container shipping, and specialized equipment; full-container and less-than-container load ocean transportation services; warehousing and distribution services; managed transportation services; and moving services to 'do-it-yourself' consumer, as well as provides final mile, time critical, product launch, warehousing, retail logistics, supply chain optimization, and trade show shipping services. The FleetNet segment provides roadside repair solutions and vehicle maintenance management services for commercial and private fleets through a network of third-party service providers. The company was formerly known as Arkansas Best Corporation and changed its name to ArcBest Corporation in May 2014. ArcBest Corporation was founded in 1923 and is headquartered in Fort Smith, Arkansas.
How the Company Makes MoneyArcBest makes money through a diversified revenue model primarily driven by its core logistics and transportation services. The company's key revenue streams include less-than-truckload (LTL) freight services, where it generates income by transporting smaller shipments that do not require a full truckload. Additionally, ArcBest earns revenue from its truckload brokerage services, facilitating the movement of full truckloads by connecting shippers with carriers. Managed transportation and supply chain optimization services provide another significant revenue stream, offering end-to-end logistics solutions and strategic planning to improve supply chain efficiency for clients. ArcBest's earnings are further supported by strategic partnerships and a strong network of carriers, enabling the company to offer competitive and reliable services in the logistics market.

ArcBest Earnings Call Summary

Earnings Call Date:Apr 29, 2025
(Q1-2025)
|
% Change Since: 17.97%|
Next Earnings Date:Jul 30, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed outlook. While there were significant advancements in operational efficiency and innovative technology deployments, revenue and operating income faced declines due to industrial weakness and market challenges. The company's proactive strategies in service enhancements and managed solutions are promising, but the current economic environment poses substantial challenges.
Q1-2025 Updates
Positive Updates
Operational Efficiency Improvements
ArcBest achieved a 31% improvement in the speed of deal execution and a 50% increase in revenue per shipment levels for dynamic business since 2020.
Innovative Technology Deployment
Introduction of Voxx Vision, a 3D perception technology that transforms forklifts into intelligent mobile dimensioners, expected to enhance transparency and compliance in freight handling workflows.
Service and Efficiency Enhancements
City route optimization reduced planning hours significantly, achieving $6 million in savings during the first quarter.
Managed Solution Growth
ArcBest's managed transportation solution achieved double-digit growth and all-time quarterly highs for both shipments and revenue.
Negative Updates
Revenue Decline
Consolidated revenue decreased by 7% from last year's first quarter to $967 million, with a significant drop in operating income.
Industrial Weakness Impact
A 4% decrease in tons per day due to industrial weakness and fewer household goods moves attributed to higher interest rates and low housing inventory.
Asset-Based Segment Challenges
The asset-based segment saw a $27 million decrease in operating income, with an operating ratio increase of 390 basis points year-over-year.
Tariff and Trade Policy Challenges
Uncertainty around US tariffs and trade policies causing disruptions and requiring adjustments in customer operations.
Company Guidance
During the ArcBest First Quarter 2025 Earnings Conference Call, the company provided several key metrics and insights into their financial and operational performance. Consolidated revenue for the first quarter decreased by 7% year-over-year to $967 million. The asset-based segment reported a $27 million decline in operating income, while the asset-light segment improved its non-GAAP operating loss by $4 million compared to the prior year. Adjusted earnings per share were 51¢, down from $1.34 in the first quarter of 2024. The asset-based business saw a 95.9% operating ratio, which increased by 390 basis points from the previous year. Despite a 4% decrease in daily shipments and a 4% reduction in weight per shipment, ArcBest achieved a 4% year-over-year increase in daily shipments in April 2025. Revenue per hundredweight in April decreased by 2% year-over-year. The asset-light segment experienced a 9% decline in daily revenue but improved its non-GAAP operating loss. The company anticipates a non-GAAP operating loss of $1 million to $2 million for this segment in the second quarter. ArcBest's capital expenditure guidance for 2025 is $225 to $275 million, with a focus on optimizing total cost ownership and strategic investments. The company returned over $24 million to shareholders through share repurchases and dividends, and has $350 million in available liquidity.

ArcBest Financial Statement Overview

Summary
ArcBest's financial statements reflect stable financial health with effective cost management and strong equity backing. However, profitability margins and cash flow generation could be improved to enhance financial performance.
Income Statement
75
Positive
ArcBest's income statement shows a solid gross profit margin of 30.2% in TTM (Trailing-Twelve-Months), indicating effective cost management. However, the net profit margin of 4.4% suggests room for improvement in profitability. The revenue growth has been volatile, with a 6.3% decline from 2022 to 2023, but recent trends suggest stabilization. The EBIT margin of 5.7% and EBITDA margin of 8.5% point to moderate operating efficiency.
Balance Sheet
80
Positive
The balance sheet reflects a strong equity position with an equity ratio of 53.8%, indicating financial stability. The debt-to-equity ratio is 0.24, showcasing prudent leverage. Return on equity stands at 13.9%, which is healthy but could be enhanced. Overall, the balance sheet demonstrates sound financial management with a low risk of over-leverage.
Cash Flow
70
Positive
Cash flow statements reveal a robust operating cash flow to net income ratio of 1.43 in TTM, highlighting efficient cash conversion. However, free cash flow growth has been inconsistent, reflected in a modest free cash flow to net income ratio of 0.34. The company's ability to generate cash remains stable, but opportunities for improving free cash flow exist.
Breakdown
TTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
4.11B4.18B4.43B5.32B3.98B2.94B
Gross Profit
281.41M350.00M378.43M578.59M639.28M228.13M
EBIT
232.39M244.43M172.62M399.27M280.99M98.28M
EBITDA
349.03M376.78M341.36M534.19M410.28M222.58M
Net Income Common Stockholders
179.40M173.96M142.16M298.21M213.52M71.10M
Balance SheetCash, Cash Equivalents and Short-Term Investments
98.67M157.20M330.07M326.03M124.96M369.36M
Total Assets
2.41B2.43B2.49B2.49B2.11B1.78B
Total Debt
315.38M413.48M437.73M438.68M337.11M403.55M
Net Debt
241.26M286.03M175.50M280.30M260.49M99.59M
Total Liabilities
1.11B1.12B1.24B1.34B1.18B950.41M
Stockholders Equity
1.29B1.31B1.24B1.15B929.07M828.59M
Cash FlowFree Cash Flow
61.22M45.85M90.17M305.31M245.04M148.50M
Operating Cash Flow
257.06M285.85M322.17M470.82M323.51M205.99M
Investing Cash Flow
-139.42M-187.28M-21.70M-261.08M-303.20M7.46M
Financing Cash Flow
-216.37M-233.35M-196.61M-127.98M-247.65M-111.41M

ArcBest Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price69.59
Price Trends
50DMA
63.51
Positive
100DMA
73.97
Negative
200DMA
89.26
Negative
Market Momentum
MACD
0.90
Negative
RSI
60.22
Neutral
STOCH
85.33
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ARCB, the sentiment is Neutral. The current price of 69.59 is above the 20-day moving average (MA) of 65.21, above the 50-day MA of 63.51, and below the 200-day MA of 89.26, indicating a neutral trend. The MACD of 0.90 indicates Negative momentum. The RSI at 60.22 is Neutral, neither overbought nor oversold. The STOCH value of 85.33 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for ARCB.

ArcBest Risk Analysis

ArcBest disclosed 30 risk factors in its most recent earnings report. ArcBest reported the most risks in the "Production" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

ArcBest Peers Comparison

Overall Rating
UnderperformOutperform
Sector (66)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
73
Outperform
$1.62B9.3714.25%0.68%-5.69%51.78%
67
Neutral
$1.10B51.042.83%1.77%-13.47%-62.49%
66
Neutral
$4.51B12.295.40%3.67%4.15%-12.21%
ULULH
65
Neutral
$664.65M7.9713.57%1.66%1.16%-30.78%
63
Neutral
$4.33B34.914.20%1.54%-0.30%-20.76%
58
Neutral
$1.74B98.881.21%1.99%-7.66%-78.26%
50
Neutral
$706.20M-3.44%0.89%-13.10%-121.50%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
ARCB
ArcBest
69.59
-38.13
-35.40%
HTLD
Heartland Express
8.81
-2.85
-24.44%
MRTN
Marten Transport
13.24
-4.13
-23.78%
WERN
Werner Enterprises
27.46
-8.02
-22.60%
ULH
Universal Logistics
24.72
-15.24
-38.14%
SNDR
Schneider National
24.22
2.41
11.05%

ArcBest Corporate Events

Business Operations and StrategyFinancial Disclosures
ArcBest Reports Q2 2025 Shipment Growth Amid Challenges
Neutral
Jun 6, 2025

In its latest update for the second quarter of 2025, ArcBest reported a 6% year-over-year increase in daily shipments within its Asset-Based segment, despite a 1% decline in weight per shipment. This growth was driven by capturing new core business, although revenue per hundredweight declined by 4% due to a shift towards easier-to-handle freight and a reduction in manufacturing shipments. The Asset-Light segment experienced an 11% year-over-year decrease in daily revenue, attributed to a strategic reduction in less profitable truckload volumes, partially offset by strength in Managed business. ArcBest anticipates its second quarter non-GAAP operating income to range from breakeven to $1 million.

The most recent analyst rating on (ARCB) stock is a Hold with a $112.00 price target. To see the full list of analyst forecasts on ArcBest stock, see the ARCB Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.