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What: Shares of freight transport company Arkansas Best Corporation (NASDAQ:ARCB) soared 16% today after its quarterly results topped Wall Street expectations.
So what: The stock has soared over the past year on rebounding fundamentals, and today's third-quarter results -- earnings per share of $0.54 blew out the consensus by $0.17 on revenue growth of 7.9% -- only reinforce that positive trend. Additionally, Arkansas Best recently implemented a new five-year labor agreement at its ABF Freight segment, giving analysts even more good vibes over its cost structure going forward.
Now what: Don't expect the operating momentum to slow anytime soon. "After a long and complex labor negotiation process at ABF Freight, we are pleased to have an implemented contract that allows us to lower costs while still providing the best-paying jobs in the industry," President and CEO Judy McReynolds said. "Going forward, we will continue with initiatives at ABF and all of our operating companies that will enable us to better serve our customers in the rapidly evolving transportation and logistics marketplace." Of course, with Arkansas Best shares up whopping 380% over its 52-week lows and trading at a forward P/E of 20, much of that improvement might already be baked into the valuation.
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