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ARCB Nasdaq· ArcBest Corporation
Earnings report Q4 2023

ARCBest Corporation Reports Decrease in Revenue for Latest Quarter

Segments of Revenue

ARCBest Corporation, a transportation and logistics company, reported total revenues of $4.43 billion for the latest quarter. This represents a decrease of 11% compared to the previous year's quarter, where revenues stood at $5.03 billion. The company's revenue is primarily generated from its various segments, including asset-based, asset-light, and logistics operations.

  • Asset-Based Revenue: The asset-based segment, which includes the company's less-than-truckload (LTL) operations, contributed $3.5 billion to the total revenue. This segment experienced a decline of 12% compared to the previous year's quarter, primarily due to lower shipment volumes and pricing pressures in the industry.

  • Asset-Light Revenue: The asset-light segment, which includes the company's expedite, truckload, and truckload brokerage operations, generated $742 million in revenue. This segment saw a decrease of 7% compared to the previous year's quarter, mainly driven by lower demand for expedited services.

  • Logistics Revenue: The logistics segment, which includes the company's managed transportation and warehousing services, contributed $186 million to the total revenue. This segment experienced a decline of 8% compared to the previous year's quarter, primarily due to lower volumes and disruptions in supply chains.

Strengths

Despite the decrease in revenue, ARCBest Corporation demonstrated several strengths in its latest quarter. The company's management highlighted its ability to adapt to changing market conditions and optimize its operations to mitigate the impact of industry challenges. Additionally, the company's asset-light segment showed resilience, with improved profitability and cost management efforts.

Challenges

The decrease in revenue for ARCBest Corporation reflects the challenges faced by the company in the latest quarter. The transportation industry experienced headwinds, including lower shipment volumes, pricing pressures, and disruptions in supply chains. These factors negatively impacted the company's asset-based, asset-light, and logistics segments, leading to a decline in overall revenue.

Noteworthy

It is worth mentioning that ARCBest Corporation reported a significant gain on the sale of discontinued operations, resulting in a pre-tax gain of $70.2 million. This gain positively impacted the company's net income for the quarter.

Summary

ARCBest Corporation reported a decrease in revenue for the latest quarter, primarily driven by lower shipment volumes, pricing pressures, and disruptions in supply chains. Despite these challenges, the company demonstrated strengths in adapting to market conditions and optimizing its operations. The asset-light segment showed resilience, contributing to improved profitability. However, the company will need to address the ongoing industry challenges to drive revenue growth in the future.

Source documents

Form 10-K  filed on Feb 23, 2024
117 pages scanned

Reference data

Company financials Q4 revenue 1.09B
Analyst estimates Q4 EPS beat by 64.74%
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