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ArcBest (ARCB) to Report Q4 Earnings: A Beat in the Offing?

By Zacks Investment ResearchStock MarketsJan 29, 2021 12:39AM ET
www.investing.com/analysis/arcbest-arcb-to-report-q4-earnings-a-beat-in-the-offing-200557534
ArcBest (ARCB) to Report Q4 Earnings: A Beat in the Offing?
By Zacks Investment Research   |  Jan 29, 2021 12:39AM ET
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ArcBest (NASDAQ:ARCB) Corporation ARCB is scheduled to report fourth-quarter 2020 earnings numbers on Feb 2, 2021, before market open.

The company has a stellar surprise record with its earnings having surpassed the Zacks Consensus Estimate in each of the last four quarters, the average being in excess of 100%.

Moreover, the Zacks Consensus Estimate for fourth-quarter earnings has been revised 72.5% upward in the past 90 days.

Against this backdrop, let’s take a look at the factors that might have shaped the company’s December-quarter performance.

We expect ArcBest’s performance In the December quarter to have been aided by the improving freight conditions in the United States. Rising freight demand is expected to have driven revenues in its asset-based business, which accounts for bulk of the company’s top line. The Zacks Consensus Estimate for fourth-quarter revenues from its asset-based business currently stands at $548 million, indicating 5.4% growth from the figure reported in fourth-quarter 2019.

Also, total billed revenue per hundredweight on asset-based shipments is likely to have increased on the company’s asset-based pricing initiatives. Backed by greater efficiencies, the segment’s operating ratio (operating expenses as a percentage of revenues) might have improved in the to-be-reported quarter. The Zacks Consensus Estimate for the metric stands at 94%, suggesting betterment 96% reported a year ago. Notably, lower the value of the ratio the better.

What Does the Zacks Model Say?

The proven Zacks model predicts an earnings beat for ArcBest this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of beating estimates, which is the case here as elaborated below. You can see the complete list of today’s Zacks #1 Rank stocks here.

Earnings ESP: ArcBest has an Earnings ESP of +0.95% as the Most Accurate Estimate is one cent above the Zacks Consensus Estimate of 88 cents per share. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: ArcBest sports a Zacks Rank of 1, currently.

Highlights of Q3 Earnings

ArcBest’s earnings (excluding 11 cents from non-recurring items) of $1.22 per share surpassed the Zacks Consensus Estimate of 77 cents. Moreover, the bottom line expanded 19.6% on a year-over-year basis. Operating revenues of $795 million also beat the Zacks Consensus Estimate of $791.4 million.

Other Stocks to Consider

Investors interested in the Zacks Transportation sector may also check out some other stocks worth considering, which possess the right combination of elements to beat estimates in the upcoming releases.

Copa Holdings (NYSE:CPA) CPA has an Earnings ESP of +14.39% and a Zacks Rank #3, currently. The company will release fourth-quarter 2020 results on Feb 10.

United Parcel Service (NYSE:UPS) UPS has an Earnings ESP of +0.90% and presently a Zacks Rank of 3. The company will release fourth-quarter 2020 results on Feb 2.

SkyWest (NASDAQ:SKYW) SKYW has an Earnings ESP of +18.63% and is Zacks #1 Ranked, currently. The company will release fourth-quarter 2020 results on Feb 4

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ArcBest (ARCB) to Report Q4 Earnings: A Beat in the Offing?
 

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ArcBest (ARCB) to Report Q4 Earnings: A Beat in the Offing?

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