FORT SMITH, Ark. - ArcBest (NASDAQ: NASDAQ:ARCB), a prominent player in supply chain logistics, reported a first-quarter 2024 earnings per share (EPS) of $1.34, falling short of analyst expectations by $0.21. The consensus estimate had been $1.55.
However, the company's revenue aligned with projections, recording $1.04 billion against a consensus estimate of the same figure. DThe company's shares experienced a slight decline of 1.75%.
The company's first-quarter revenue from continuing operations saw a decrease from the $1.1 billion reported in the same quarter of the previous year. ArcBest's net loss from continuing operations was $2.9 million, or -$0.12 per diluted share, which included a significant after-tax, noncash impairment charge related to its equity investment in Phantom Auto.
Judy R. McReynolds, ArcBest Chairman, President, and CEO, commented on the quarter's results, emphasizing the dedication of the company's employees to service excellence, which led to improved customer service and operational efficiency gains. She noted the company's performance in the softer freight environment and the recognition received from customers and the industry, including a prestigious award for ABF, an ArcBest company.
The Asset-Based segment of the business saw a 3.0 percent per-day decrease in revenue, dropping to $671.5 million from $697.8 million in the previous year. This segment, however, maintained its non-GAAP operating income level despite the revenue decline, underscoring the company's focus on serving core customers and improving operational efficiencies.
Conversely, the Asset-Light segment faced a more significant revenue decrease of 8.8 percent, with operating losses on both a GAAP and non-GAAP basis. This decline reflects the current macro weakness impacting demand and excess capacity in the full truckload market, as well as lower rates and margins for truckload solutions.
ArcBest's report indicates a challenging quarter, marked by an EPS miss and a slight stock price decline. The company's focus on operational efficiency and customer service has helped mitigate some of the impacts of the softer freight environment, and management remains optimistic about the company's positioning for a potential market recovery.
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