| Over a week ago | ||||
ArcBest has reached an… ArcBest has reached an agreement, following a process that began in early 2022, to sell FleetNet America, a provider of fleet maintenance and repair services, to Cox Automotive Mobility Solutions, a division of Cox Enterprises. The sale is effective February 28. Terms of the transaction include a cash payment at closing of $100M, subject to certain tax and other customary adjustments, customary representations and warranties of the seller, FleetNet and Cox Enterprises. On a preliminary basis, ArcBest expects to receive proceeds, net of tax and transaction expenses, of approximately $75M and to record an estimated after-tax gain of approximately $50M on this transaction. In addition, ArcBest announced that its board of directors has increased the total amount available under the company's common stock repurchase program to $125M. Stephens acted as financial advisor to ArcBest for the transaction. Vinson & Elkins acted as legal advisor to ArcBest. BakerHostetler acted as legal advisor to Cox Automotive. | ||||
| Over a month ago | ||||
Deutsche Bank analyst… Deutsche Bank analyst Amit Mehrotra lowered the firm's price target on Werner (WERN) to $56 from $57 following quarterly results and as LTL company TFI International (TFII) disclosed in its Q4 release that it owns just over 1 million shares of another LTL company, ArcBest (ARCB), equal to about a 4% equity stake. The firm keeps a Buy rating on the shares. | ||||
Susquehanna analyst… Susquehanna analyst Bascome Majors raised the firm's price target on TFI International (TFII) to $138 from $105 and keeps a Neutral rating on the shares. The analyst said management established a credible case for a mid-$7.00 EPS floor in 2023, while encouraging investors to look across the valley with an active discussion of large-scale M&A in 2024 and a surprise ~$100M / ~4% investment in competing union U.S. LTL carrier ARCB (ARCB). | ||||
Cowen analyst Jason Seidl… Cowen analyst Jason Seidl raised the firm's price target on ArcBest to $127 from $124. The analyst said the firm expects margin pressure in 1H followed by recovery in 2H as volumes pick up and inflationary pressures in maintenance and purchased transportation normalize. | ||||
Credit Suisse analyst… Credit Suisse analyst Ariel Rosa raised the firm's price target on ArcBest to $100 from $90 and keeps an Outperform rating on the shares. The firm acknowledges the company's slight miss on Q4 EPS, but highlights that LTL OR is showing resilience. | ||||
Reports Q4 revenue… Reports Q4 revenue $1.24B, consensus $1.25B. "I am pleased to report that ArcBest exceeded $5 billion in annual revenue for the first time and delivered the highest annual earnings per share in company history," said Judy R. McReynolds, ArcBest chairman, president and CEO. "Our fourth quarter and record-breaking full-year 2022 results are directly related to our relentless pursuit of excellence. Despite the challenges in 2022 as a result of ongoing macro trends, the ArcBest team remained focused on serving our customers and advancing our strategic initiatives. We see tremendous opportunity ahead as we celebrate our 100th anniversary in 2023 - an impressive milestone that would not be possible without our dedicated people, who are at the heart of our success. Looking forward, we are confident that our continued investments in ArcBest's people, our unrivaled network of integrated logistics solutions and innovative mindset will drive continued growth, greater efficiency and value creation for generations to come." | ||||
| Over a quarter ago | ||||
Credit Suisse analyst… Credit Suisse analyst Ariel Rosa raised the firm's price target on ArcBest to $92 from $87 and keeps an Outperform rating on the shares. The analyst notes that while ArcBest gives select reasons to worry about macro and margins, he sees downturn heavily priced into depressed valuation. | ||||
Reports Q3 revenue… Reports Q3 revenue $1.35B, consensus $1.34B. "Our third quarter results reflect the benefits of our growth strategy and continue a track record of impressive performances as we bring our best-in-class approach to customers more efficiently and effectively every single day," said Judy McReynolds, ArcBest chairman, president and CEO. "Despite a more challenging economic environment, we continue to invest in our team, solutions and facilities. We remain focused on delivering for our customers to provide them the reliability, flexibility and sustainability they need in their supply chains. This year we are on track to deliver more than $5 billion in annual revenue for the first time in our hundred-year history. We are confident that future growth opportunities remain bright as we work to achieve our long-term financial targets." | ||||
Credit Suisse analyst… Credit Suisse analyst Ariel Rosa lowered the firm's price target on ArcBest to $87 from $105 and keeps an Outperform rating on the shares. Discounted valuation reflects concerns that earnings could drop sharply in recession, the analyst notes. | ||||
Citi analyst Christian… Citi analyst Christian Wetherbee lowered the firm's price target on ArcBest to $90 from $94 and keeps a Buy rating on the shares. The analyst reduced estimates for his truck and logistics coverage, for both Q3 and 2023, ahead of the Q3 results. Wetherbee sees an ongoing freight trend deceleration. In addition, with cost inflation likely to be persistent into 2023, there could be an "air pocket in early 2023, which could result in a sharp miss" versus current consensus expectations, Wetherbee tells investors in a research note. He sees downside risk to Q3 consensus estimates for most names in the space. | ||||
