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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