ArcBest Q1 Adjusted EPS Tops Estimates by 3 Cents Despite Loss
ArcBest reported a first-quarter net loss of $1 million (5 cents per share) while delivering adjusted EPS of 32 cents, beating consensus by 3 cents. Consolidated revenue reached $999 million, with asset-based tonnage up 6.5% per day and brokerage segment operating income rising above guidance at $2.8 million.
1. Q1 Financial Highlights
ArcBest posted a headline net loss of $1 million, or 5 cents per share, and reported adjusted earnings of 32 cents per share, 3 cents above consensus. Consolidated revenue totaled $999 million, in line with expectations.
2. Asset-based Unit Performance
The asset-based segment generated $655 million in revenue, up 1% year-over-year (2% on a per-day basis), with tonnage per day rising 6.5%. Revenue per hundredweight fell 4%, while contractual rates increased 6.3% for the quarter and 10.3% on a two-year stacked basis.
3. Asset-light Segment Results
The asset-light brokerage division delivered $2.8 million of adjusted operating income, exceeding the high end of guidance, on 6% higher quarterly revenue. In April, daily shipments climbed 17% and revenue per day surged 24%, driven by managed transportation growth and higher fuel-surcharge revenues.
4. Second Quarter Outlook
Management forecasts a sequential operating ratio improvement of 400 to 500 basis points in Q2, implying a 92.8% ratio flat year-over-year, and expects asset-light adjusted operating income of $1 million to $3 million.