- ArcBest reports an 11.6% YoY decline in Q3 FY23 revenues.
- Profits expectedly decline, but significant EPS beat brightens the horizon.
- Downturn attributed to reduced asset-based and asset-light sales.
- Remedial strategies under consideration to adapt and adjust strategies to prevailing market conditions.
In the rollercoaster-like economic terrain, even high-performing companies can experience significant downturns. Case in point is the gloomy performance of the American logistics giant, ArcBest, in the third quarter of FY23.
The company reported an 11.6% YoY revenue fall to $1.128 billion on its way off the consensus mark of $1.13 billion. This decline marked a surprising stumble for a corporation that has consistently impressed with its figures over the years. The adjusted EPS came in at $2.31, a notable dip from the $3.79 recorded in 3Q22, albeit significantly exceeding the consensus of $1.50.
The struggles highlighted a challenging quarter, as operating income from continuing operations fell by a staggering 60.9% YoY to $45.09 million, with a margin contraction of 504bps to a meager 4%. The breakdown shows a 6.4% YoY decrease in revenue from the Asset-Based sector at $741.19 million, and a concerning 18.6% YoY decrease in revenue from the Asset-Light sector at $419.31 million.
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