Logistics Company ArcBest's Stock Tumbles Post Q1 Results: Here's Why
Portfolio Pulse from Akanksha Bakshi
ArcBest Corp (NASDAQ:ARCB) reported a 6.30% decline in Q1 fiscal 2024 revenue to $1.036 billion, slightly above consensus. Adjusted EPS fell to $1.34 from $1.58, missing expectations. The quarter included a $21.6 million impairment charge from its investment in Phantom Auto. Operating income rose 6% Y/Y, but margins contracted. Segment-wise, Asset-Based revenue dropped 3.8% and Asset-Light by 9.5%. Adjusted EBITDA decreased by 6.11% Y/Y. Operating cash flow and cash reserves also declined. ARCB announced a $0.12 quarterly dividend. Shares fell 14.5% to $110.74.
April 30, 2024 | 3:08 pm
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NEGATIVE IMPACT
ArcBest Corp reported a decline in Q1 fiscal 2024 revenue and a miss on adjusted EPS expectations, including a significant impairment charge. The company announced a quarterly dividend amidst a stock price drop.
The reported decline in revenue and earnings miss, coupled with the significant impairment charge, are likely to negatively impact investor sentiment in the short term. The announcement of a quarterly dividend may provide some support, but the substantial drop in stock price indicates a negative outlook.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100