Arkansas Best Corp. Earnings: Net Income Sinks
Arkansas Best Corporation (NASDAQ:ABFS) reported its results for the third quarter. Arkansas Best is a holding company that, through its subsidiaries, is engaged in motor carrier transportation operations.
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Arkansas Best Corporation Earnings Cheat Sheet
Results: Net income for Arkansas Best Corporation fell to $6.5 million (24 cents per share) vs. $12.3 million (46 cents per share) a year earlier. This is a decline of 47% from the year-earlier quarter.
Revenue: Rose 13% to $577.5 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: Arkansas Best Corporation fell short of the mean analyst estimate of 25 cents per share. It beat the average revenue estimate of $450.7 million.
Quoting Management: “Arkansas Best’s results reflect weakness in the economy that contributed to reduced customer business levels and lower profitability at ABF. The slowing business environment also reduced the demand for expedited services at Panther,” said Arkansas Best President and CEO Judy R. McReynolds. “However, at our emerging non-asset-based companies, we are encouraged by the continuation of strong revenue and improving profitability trends in the midst of a tenuous economy.”
Revenue has increased for four consecutive quarters. Revenue increased 2.4% to $510.5 million in the second quarter. The figure rose 1.4% in the first quarter from the year earlier and climbed 5% in the fourth quarter of the last fiscal year from the year-ago quarter.
The company fell short of estimates last quarter after beating the mark the quarter before with net income of 18 cents versus a mean estimate of net income of 16 cents per share.
Looking Forward: Expectations for the company’s next-quarter results are lower than they have been. Over the past sixty days, the average estimate for fourth quarter has fallen from 22 cents per share to 12 cents. The average estimate for the fiscal year is a loss of 15 cents per share, a decline from a profit of 17 cents sixty days ago.
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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)
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