ArcBest third quarter net income up almost 40%; year-to-date income up more than 76%

ArcBest is shipping and managing the shipment of more stuff and getting paid more to do both. It’s why the Fort Smith-based company is on track to post record revenue of $5 billion in 2022, and why net income through September is up more than 76%.

The Fort Smith-based shipping and logistics company on Tuesday (Nov. 1) reported a third-quarter net income of $88.842 million, up 39.5% compared with the same quarter in 2021. Revenue in the quarter was $1.351 billion, well ahead of $1.016 billion in the same quarter of 2021 and above the consensus estimate of $1.34 billion.

Per share earnings in the quarter reached $3.50, better than $2.38 in the same quarter of 2021 but below the consensus estimate of $3.72. The company reported non-GAAP per-share earnings of $3.80.

Net income in the first three quarters of 2022 was $260.872 million, up 76.2% compared with $148.033 million in the same period of 2021. Revenue through the first three quarters was $4.079 billion, up 46% compared with the same period in 2021.

“Despite a more challenging economic environment, we continue to invest in our team, solutions and facilities. We remain focused on delivering for our customers to provide them the reliability, flexibility and sustainability they need in their supply chains. This year we are on track to deliver more than $5 billion in annual revenue for the first time in our hundred-year history. We are confident that future growth opportunities remain bright as we work to achieve our long-term financial targets,” ArcBest Chair, President and CEO Judy McReynolds noted in the earnings report.

The company also reported significant revenue and operating income gains with ABF Freight, its less-than-truckload segment. ABF operating income is up 72.3% in the first three quarters of the year compared with the same period in 2021.

ABF Freight
Revenue
3Q 2022: $791.531 million
3Q 2021: $681.164 million

Jan.-Sept. 2022: $2.299 billion
Jan.-Sept. 2021: $1.89 billion

Operating income
3Q 2022: $109.312 million
3Q 2021: $83.618 million

Jan.-Sept. 2022: $306.002 million
Jan.-Sept. 2021: $177.584 million

“Higher third quarter shipments and tonnage, combined with an increase in average weight per shipment, resulted in a revenue increase versus the same period last year. Following the robust year-over-year increase in third quarter 2021, current pricing levels remain solid and were enhanced by higher fuel surcharges,” the company noted about its trucking business.

Operating income in the company’s logistics segment (ArcBest) is up almost 35% in the first three quarters of 2022.

ArcBest (logistics)
Revenue
3Q 2022: $515.235 million
3Q 2021: $305.207 million

Jan.-Sept. 2022: $1.66 billion
Jan.-Sept. 2021: $828.291 million

Operating income
3Q 2022: $89.276 million
3Q 2021: $66.514 million

Jan.-Sept. 2022: $249.786 million
Jan.-Sept. 2021: $185.224 million

“The positive impact of additional truckload business from MoLo was the main contributor to increased third quarter revenue and shipment totals versus last year. Further progress was made on the MoLo integration and all of ArcBest’s Asset-Light truckload shipments are now being managed in one operating platform. In addition to truckload, third quarter revenue growth was positively impacted by managed transportation and dedicated services,” the company noted.

Billed revenue per hundredweight, a closely watched metric in the trucking industry, was $46.42 in the third quarter, up 11.1% compared with the same period in 2021. Billed revenue per hundredweight is up 16.4% through the first three quarters of 2022. Tonnage shipped in the third quarter was 846,613, up 4.4% compared with the same quarter in 2021, and is up 4.2% through the first three quarters of 2022.

ArcBest in 2021 acquired Chicago-based 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.

ArcBest shares (NASDAQ: ARCB) closed Monday at $79.43. During the past 52 weeks, the share price has ranged between $125 and $65.16. The share price is down 30% from the beginning of the year.