Higher shipment weights help ArcBest beat Q3 expectations
Increased shipment weights fueled higher overall tonnage and revenue per shipment at ArcBest’s less-than-truckload division during the third quarter, allowing the carrier to surpass analysts’ expectations. The post Higher shipment weights help ArcBest beat Q3 expectations appeared first on FreightWaves .
ArcBest exceeded third-quarter expectations on Wednesday due to heavier shipments and improved performance in its less-than-truckload (LTL) unit. The company reported adjusted earnings per share of $2.62, which was 80% higher year-over-year and beat the consensus estimate by 11 cents. Consolidated revenue increased 15% year-over-year to $1.21 billion.
ArcBest's LTL subsidiary, ABF Freight, saw revenue rise 10% year-over-year to $799 million, driven by a 10% increase in tonnage and a 13% rise in weight per shipment. Despite a 3% decline in shipments, revenue per hundredweight increased by 1% on a year-over-year basis, while revenue per shipment jumped 14%. Contractual rate increases averaged 5.1% during the period, and the company implemented a 5.9% general rate increase for LTL services in June.
The unit's operating ratio improved by 40 basis points year-over-year, 40 basis points better than the second quarter.
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