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ArcBest Corporation (ARCB)
NASDAQ:ARCB
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ArcBest (ARCB) AI Stock Analysis

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ARCB

ArcBest

(NASDAQ:ARCB)

Rating:79Outperform
Price Target:
$99.00
▲(14.84%Upside)
ArcBest's strong technical indicators and reasonable valuation are offset by challenges in financial performance and mixed earnings call outcomes. The company's ability to manage costs effectively and its strategic initiatives in technology and service enhancements provide a promising outlook, though economic and industrial challenges remain significant.
Positive Factors
Earnings Outlook
The price objective for ARCB has been increased to $86, reflecting a positive outlook on future earnings.
Leadership
Seth Runser, with 18 years of experience at ARCB, takes over as CEO after successfully guiding the company through pandemic-related challenges and overseeing strategic initiatives.
Negative Factors
Core Yield Pressure
Momentum in share gains with core customers is expected to mitigate core yield pressure.
Revenue Pressure
The company continues to experience below-target yields, indicating a shift toward lower-margin transactional business.

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

ArcBest Business Overview & Revenue Model

Company DescriptionArcBest Corporation (ARCB) is a leading logistics company based in the United States, specializing in providing comprehensive transportation and logistics solutions. The company operates in sectors such as less-than-truckload (LTL) shipping, truckload brokerage, managed transportation, and supply chain optimization. ArcBest is committed to delivering innovative and customized logistics services to meet the evolving needs of its diverse customer base across various industries.
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: 46.14%|
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 indicate a stable position with strong equity and efficient cost management. While profitability margins and cash flow generation show room for improvement, the company's financial health supports sustainable operations.
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue4.18B4.43B5.32B3.98B2.94B
Gross Profit350.00M378.43M578.59M639.28M228.13M
EBITDA376.78M341.36M534.19M410.28M222.58M
Net Income173.96M142.16M298.21M213.52M71.10M
Balance Sheet
Total Assets2.43B2.49B2.49B2.11B1.78B
Cash, Cash Equivalents and Short-Term Investments157.20M330.07M326.03M124.96M369.36M
Total Debt413.48M437.73M438.68M337.11M403.55M
Total Liabilities1.12B1.24B1.34B1.18B950.41M
Stockholders Equity1.31B1.24B1.15B929.07M828.59M
Cash Flow
Free Cash Flow45.85M90.17M305.31M245.04M148.50M
Operating Cash Flow285.85M322.17M470.82M323.51M205.99M
Investing Cash Flow-187.28M-21.70M-261.08M-303.20M7.46M
Financing Cash Flow-233.35M-196.61M-127.98M-247.65M-111.41M

ArcBest Technical Analysis

Technical Analysis Sentiment
Positive
Last Price86.21
Price Trends
50DMA
72.71
Positive
100DMA
69.72
Positive
200DMA
85.14
Positive
Market Momentum
MACD
2.96
Positive
RSI
68.19
Neutral
STOCH
89.94
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ARCB, the sentiment is Positive. The current price of 86.21 is above the 20-day moving average (MA) of 81.26, above the 50-day MA of 72.71, and above the 200-day MA of 85.14, indicating a bullish trend. The MACD of 2.96 indicates Positive momentum. The RSI at 68.19 is Neutral, neither overbought nor oversold. The STOCH value of 89.94 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
79
Outperform
$1.93B11.1214.25%0.56%-5.69%51.78%
70
Outperform
$721.27M11.829.67%1.39%-5.55%-52.21%
66
Neutral
$4.55B36.554.20%1.46%-0.30%-20.76%
65
Neutral
$11.05B15.765.13%1.92%3.11%-24.90%
61
Neutral
$1.78B100.531.21%1.91%-7.66%-78.26%
58
Neutral
$1.06B50.622.72%1.84%-11.77%-52.06%
53
Neutral
$651.21M-4.42%0.96%-16.42%-49.44%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
ARCB
ArcBest
86.21
-34.45
-28.55%
HTLD
Heartland Express
8.36
-4.49
-34.94%
MRTN
Marten Transport
13.00
-5.14
-28.34%
WERN
Werner Enterprises
29.33
-9.28
-24.04%
ULH
Universal Logistics
30.11
-11.09
-26.92%
SNDR
Schneider National
26.03
0.15
0.58%

ArcBest Corporate Events

Dividends
ArcBest Declares Quarterly Cash Dividend Announcement
Positive
Jul 25, 2025

On July 25, 2025, ArcBest announced that its Board of Directors approved a quarterly cash dividend of $0.12 per share, payable to shareholders of record on August 8, 2025, with payment scheduled for August 22, 2025. This decision reflects ArcBest’s ongoing commitment to returning value to its shareholders and may positively influence investor confidence in the company’s financial health.

The most recent analyst rating on (ARCB) stock is a Hold with a $114.00 price target. To see the full list of analyst forecasts on ArcBest stock, see the ARCB Stock Forecast page.

Executive/Board ChangesBusiness Operations and Strategy
ArcBest Announces Board Member Retirement and New Appointment
Neutral
Jul 24, 2025

On July 24, 2025, ArcBest announced the retirement of long-serving board member Steven L. Spinner, effective October 31, 2025, after 14 years of service. Concurrently, the board appointed Thom Albrecht, a seasoned expert in transportation and logistics, as a new independent director. Albrecht’s extensive experience in finance and business strategy is expected to enhance ArcBest’s board as the company continues to execute its long-term strategy. These changes are part of ArcBest’s regular assessment of board composition and are aimed at enhancing long-term sustainable value for shareholders.

The most recent analyst rating on (ARCB) stock is a Hold with a $114.00 price target. To see the full list of analyst forecasts on ArcBest stock, see the ARCB Stock Forecast page.

Executive/Board ChangesBusiness Operations and Strategy
ArcBest Announces CEO Transition Effective January 2026
Positive
Jul 17, 2025

On July 17, 2025, ArcBest announced that CEO Judy R. McReynolds will retire on December 31, 2025, with President Seth Runser set to succeed her as CEO on January 1, 2026. McReynolds, who has led the company since 2010, will continue as chairman of the board. Runser, with 18 years at ArcBest, is expected to build on the company’s legacy of innovation and customer service. This transition is seen as a strategic move to ensure continued growth and value creation for stakeholders, with Runser’s leadership anticipated to drive future success.

The most recent analyst rating on (ARCB) stock is a Hold with a $114.00 price target. To see the full list of analyst forecasts on ArcBest stock, see the ARCB Stock Forecast page.

Private Placements and FinancingBusiness Operations and Strategy
ArcBest Amends Receivables Loan Agreement for 2025
Neutral
Jun 17, 2025

On June 12, 2025, ArcBest Funding LLC, a subsidiary of ArcBest Corporation, amended its Receivables Loan Agreement to extend the facility termination date to July 1, 2026. This amendment, effective July 1, 2025, impacts the company’s financial operations by securing loans with accounts receivable, and it includes provisions for standby letters of credit to support self-insured liabilities, reflecting ArcBest’s strategic financial management.

The most recent analyst rating on (ARCB) stock is a Hold with a $114.00 price target. To see the full list of analyst forecasts on ArcBest stock, see the ARCB Stock Forecast page.

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.Date of analysis: Jul 26, 2025