ArcBest reports continued ‘momentum,’ says August revenue up 18%

Fort Smith-based ArcBest is likely to again post impressive financial numbers in its third quarter report. The logistics and shipping company on Thursday (Sept. 8) said its July revenue was 19% more than July 21, and August revenue was up 18%.

The company issued a brief update about the business in an 8K filing with the U.S. Securities and Exchange Commission.

“On a preliminary basis, August 2022 consolidated revenues grew approximately 32% on a per day basis compared to August 2021, reflecting business momentum resulting from continued customer demand for our logistics solutions and revenue growth in all three operating segments,” the company noted.

Financials are benefitting from the 2021 acquisition of Chicago-based MoLo Solutions, the company reported. ArcBest acquired MoLo in a $235 million deal. MoLo was a truckload freight brokerage firm with access to more than 70,000 “carrier partners” in the truckload shipping business.

The 8K also showed that the company’s billed revenue per shipment was up 18.1% in July and up 13% in August. The more closely watched billed revenue per hundredweight was up 11.2% in July and up 9% in August.

“The revenue per hundredweight increase in August 2022 followed a 21% increase in August 2021 versus August 2020,” according to the 8K filing.

A healthy third quarter will follow a first half of the year in which the company reported July 29 that net income in the first half was $172.03 million, up 104% compared with the $84.342 million in the same period of 2021. Revenue in the first half was $2.726 billion, well above the $1.778 billion in the same period of 2021. The company is on track to post annual revenue above $4 billion for the first time in its almost 100-year history.

Second-quarter revenue was $1.392 billion, well ahead of the $948.973 million in what was a robust second quarter of 2021. Net income in the second quarter was $102.461 million, up 68% compared with the $60.981 million in the same quarter of 2021.

Third quarter earnings are expected to be reported between Oct. 31 and Nov. 4. The consensus estimate as of Thursday is net income of $3.76 per share, above the $2.59 in the same quarter of 2021. Consensus revenue is $1.36 billion, which would be better than the $1.016 billion in the 2021 quarter.

ArcBest’s 2021 net income was $213.521 million, well above the $71.1 million in 2020. Full-year revenue totaled $3.98 billion, up 35.4% compared with $2.94 billion in 2020.

ArcBest shares (NASDAQ: ARCB) closed Thursday at $75.48, down 97 cents. During the past 52 weeks, the share price has ranged between $125 and $65.16. The share price is down 67% from the beginning of the year.