The 10-second takeaway
For the quarter ended March 31 (Q1), Arkansas Best missed estimates on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded slightly and GAAP loss per share expanded.
Margins dropped across the board.
Arkansas Best notched revenue of $440.9 million. The 10 analysts polled by S&P Capital IQ foresaw sales of $450.7 million on the same basis. GAAP reported sales were 1.4% higher than the prior-year quarter's $434.9 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at -$0.49. The 15 earnings estimates compiled by S&P Capital IQ forecast -$0.17 per share. GAAP EPS were -$0.71 for Q1 versus -$0.51 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was -5.2%, 860 basis points worse than the prior-year quarter. Operating margin was -5.2%, 10 basis points worse than the prior-year quarter. Net margin was -4.1%, 120 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $515.8 million. On the bottom line, the average EPS estimate is $0.31.
Next year's average estimate for revenue is $2.00 billion. The average EPS estimate is $0.91.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 77 members out of 91 rating the stock outperform, and 14 members rating it underperform. Among 30 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 26 give Arkansas Best a green thumbs-up, and four give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Arkansas Best is outperform, with an average price target of $23.67.
Over the decades, small-cap stocks, like Arkansas Best have provided market-beating returns, provided they're value priced and have solid businesses. Read about a pair of companies with a lock on their markets in "Too Small to Fail: Two Small Caps the Government Won't Let Go Broke." Click here for instant access to this free report.
- Add Arkansas Best to My Watchlist.
Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.