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The Zacks Consensus Estimate for ARCB’s third-quarter earnings has been revised 3.3% upward in the past 90 days. Moreover, ArcBest has an impressive surprise history, with its earnings having outperformed the Zacks Consensus Estimate in each of the preceding four quarters, the average being 22.3%.
Against this backdrop, let’s look at the factors likely to have impacted ArcBest’s performance in third-quarter 2022.
Strong freight market conditions, increased customer demand and favorable pricing are expected to have driven the Asset-Based segment’s (accounting for the bulk of the top line) performance in the September quarter. Network resource allocation to cater to less-than-truckload (LTL) customers is likely to have boosted tonnage and shipments in the segment.
The Zacks Consensus Estimate for revenues at the Asset-Based segment indicates a 28.5% increase from third-quarter 2021 actuals. The Asset-Light segment is expected to have benefited from favorable market rates owing to strong customer demand amid capacity constraints.
However, supply-chain disruptions might have resulted in softened shipments in the third quarter. Escalating operating expenses, primarily due to increased salaries, wages, and benefits and fuel expenses at the Asset-Based segment, and higher purchased transportation costs at the Asset-Light unit, are likely to have dented ArcBest’s bottom line in the to-be-reported quarter.
Earnings Whispers
Our 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 odds of an earnings beat, 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 +3.12%% as the Most Accurate Estimate is pegged at $3.87, above the Zacks Consensus Estimate of $3.75. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: ArcBest currently carries a Zacks Rank of 3.
Stocks to Consider
Here are a few stocks from the broader Zacks Transportation sector that investors may consider, as our model shows that these have the right combination of elements to beat on third-quarter 2022 earnings:
CPA has an expected earnings growth rate of more than 100% for the current year. CPA delivered a trailing four-quarter earnings surprise of 174.22%, on average.
Westinghouse Air Brake Technologies Corporation, operating as Wabtec Corporation (WAB - Free Report) , has an Earnings ESP of +0.72% and a Zacks Rank #3. WAB will release results on Nov 1.
Wabtec’s earnings outshined the Zacks Consensus Estimate in three of the last four quarters (missing the mark in the remaining quarter). The average beat is 0.42%.
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What's in the Offing for ArcBest (ARCB) in Q3 Earnings?
ArcBest Corporation (ARCB - Free Report) is scheduled to report third-quarter 2022 results on Nov 1, before market open.
The Zacks Consensus Estimate for ARCB’s third-quarter earnings has been revised 3.3% upward in the past 90 days. Moreover, ArcBest has an impressive surprise history, with its earnings having outperformed the Zacks Consensus Estimate in each of the preceding four quarters, the average being 22.3%.
ArcBest Corporation Price and EPS Surprise
ArcBest Corporation price-eps-surprise | ArcBest Corporation Quote
Against this backdrop, let’s look at the factors likely to have impacted ArcBest’s performance in third-quarter 2022.
Strong freight market conditions, increased customer demand and favorable pricing are expected to have driven the Asset-Based segment’s (accounting for the bulk of the top line) performance in the September quarter. Network resource allocation to cater to less-than-truckload (LTL) customers is likely to have boosted tonnage and shipments in the segment.
The Zacks Consensus Estimate for revenues at the Asset-Based segment indicates a 28.5% increase from third-quarter 2021 actuals. The Asset-Light segment is expected to have benefited from favorable market rates owing to strong customer demand amid capacity constraints.
However, supply-chain disruptions might have resulted in softened shipments in the third quarter. Escalating operating expenses, primarily due to increased salaries, wages, and benefits and fuel expenses at the Asset-Based segment, and higher purchased transportation costs at the Asset-Light unit, are likely to have dented ArcBest’s bottom line in the to-be-reported quarter.
Earnings Whispers
Our 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 odds of an earnings beat, 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 +3.12%% as the Most Accurate Estimate is pegged at $3.87, above the Zacks Consensus Estimate of $3.75. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: ArcBest currently carries a Zacks Rank of 3.
Stocks to Consider
Here are a few stocks from the broader Zacks Transportation sector that investors may consider, as our model shows that these have the right combination of elements to beat on third-quarter 2022 earnings:
Copa Holdings (CPA - Free Report) has an Earnings ESP of +0.26% and a Zacks Rank #2. CPA will release results on Nov 16. You can see the complete list of today’s Zacks #1 Rank stocks here.
CPA has an expected earnings growth rate of more than 100% for the current year. CPA delivered a trailing four-quarter earnings surprise of 174.22%, on average.
Westinghouse Air Brake Technologies Corporation, operating as Wabtec Corporation (WAB - Free Report) , has an Earnings ESP of +0.72% and a Zacks Rank #3. WAB will release results on Nov 1.
Wabtec’s earnings outshined the Zacks Consensus Estimate in three of the last four quarters (missing the mark in the remaining quarter). The average beat is 0.42%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.