The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Arkansas Best beat expectations on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly. Non-GAAP earnings per share shrank to a loss. GAAP earnings per share dropped to a loss.
Margins contracted across the board.
Arkansas Best reported revenue of $537.0 million. The 13 analysts polled by S&P Capital IQ predicted a top line of $517.2 million on the same basis. GAAP reported sales were 16% higher than the prior-year quarter's $463.2 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 -$0.22. The 17 earnings estimates compiled by S&P Capital IQ predicted -$0.04 per share. Non-GAAP EPS were -$0.22 for Q4 versus $0.08 per share for the prior-year quarter. GAAP EPS were -$0.31 for Q4 versus $0.05 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 4.1%, 370 basis points worse than the prior-year quarter. Operating margin was -2.1%, 260 basis points worse than the prior-year quarter. Net margin was -1.5%, 180 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $519.6 million. On the bottom line, the average EPS estimate is -$0.38.
Next year's average estimate for revenue is $2.26 billion. The average EPS estimate is $0.43.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 109 members out of 127 rating the stock outperform, and 18 members rating it underperform. Among 42 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 37 give Arkansas Best a green thumbs-up, and five give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Arkansas Best is hold, with an average price target of $10.00.
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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. The Motley Fool has no position in any of the stocks mentioned. 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.