ArcBest

Sluggish recovery in Cass freight data

Truck traveling along highway

Freight data provided by Cass Information Systems for July continues to lag other market indicators. While the freight index displayed a 4.8% sequential monthly improvement in shipments from June to July, with expenditures increasing 2.8%, the dataset is still a long way off of prior-year levels, posting a 13.1% year-over-year decline in shipments, with expenditures falling 14.3%.

The report’s author, Stifel Financial (NYSE: SF) equity research analyst David Ross, pointed to headwinds like...

https://www.freightwaves.com/news/sluggish-recovery-in-cass-freight-data

YRC announces next-day expansion as less-than-truckload market heats up

YRC double on highway

Not to be outdone by recent expansion announcements from competitors, less-than-truckload (LTL) carrier YRC Worldwide (NASDAQ: YRCW) is expanding its regional next-day service.

In a Wednesday press release, the Overland Park, Kansas-based carrier said the addition of more lanes in the mid-South and Waco, Texas, is part of its network restructuring.

“Through Regional Next-Day service, our customers in Texas and the mid-South can access just-in-time scheduling that offers benefits of lowered...

https://s29755.pcdn.co/news/yrc-announces-next-day-expansion-as-less-than-truckload-market-heats-up

Cost control leads Q2 beat; July trends improve

ABF double under American flag

On an earnings call with analysts, management from ArcBest Corp (NASDAQ: ARCB) highlighted their ability to manage costs through the COVID-19 downturn. The impact from a 19% year-over-year revenue decline in the second quarter of 2020 was limited by previous cost actions taken.

The flexibility of its labor contracts allowed the company to better match drivers and workers to a 13% decline in daily shipments within its asset-based segment, which includes less-than-truckload (LTL) operations.

The...

https://s29755.pcdn.co/news/cost-control-leads-q2-beat-july-trends-improve

ArcBest Q2 well ahead of estimates

ArcBest double moving down highway

ArcBest Corp (NASDAQ: ARCB) reported adjusted earnings per share (EPS) of $0.67, well ahead of the break-even consensus estimate.

The asset-based division, which includes less-than-truckload (LTL) operations, reported a 17.8% year-over-year revenue decline to $460 million. Tonnage was down 13.8% with revenue per hundredweight, or yield, declining 4%. LTL yield was up in the low-single digit percentage range excluding fuel surcharge revenue. The division posted a 94.4% operating ratio, 140 basis...

https://s29755.pcdn.co/news/arcbest-q2-well-ahead-of-estimates

Merrill Lynch boosts Knight Swift, J.B. Hunt and ArcBest

The transportation team at Bank of America Merrill Lynch (BOAML) is bullish on trucking stocks, raising the price objectives on a handful of them by several dollars per share.

The team led by Ken Hoexter based its increase in price objective (PO) on “the inflecting demand and spot rate environment.” It did not increase its buy/neutral/sell recommendation on any stocks. 

Getting an upward kick from the BOAML team was Knight-Swift (PO now $49, was $46, stock closed earlier this week  at $43.05);...

https://s29755.pcdn.co/news/merrill-lynch-boosts-knight-swift-j-b-hunt-and-arcbest

Geofencing data: Less-than-truckload boost carries into June

Old Dominion and UPS Freight trucks at facility

Less-than-truckload (LTL) volumes continued to improve throughout May and into the first week of June, said Deutsche Bank (NYSE: DB) analyst Amit Mehrotra in a note to clients.

He reported that in the first week of June, LTL activity levels improved 7% versus the average levels seen in May and were up 8% compared to the last week of May. Mehrotra believes that Old Dominion Freight Line (NASDAQ: ODFL) and SAIA (NASDAQ: SAIA) outperformed the average increase and UPS (NYSE: UPS) and YRC Worldwide (

https://s29755.pcdn.co/news/geofencing-data-less-than-truckload-boost-carries-into-june

Trying to make sense of the YRC bailout

YRC Freight double in the desert

The claws are coming out already, with some industry onlookers questioning the government’s rationale behind making a huge loan to less-than-truckload (LTL) carrier YRC Worldwide (NASDAQ: YRCW), a perpetually struggling company and one that the government’s own Defense Department alleges overcharged it for services. The loan’s placement under the umbrella of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, which is intended to help businesses survive the economic downturn caused...

https://s29755.pcdn.co/news/trying-to-make-sense-of-the-yrc-bailout

Shares of YRC Worldwide sink on weak midquarter report

YRC LTL rig on highway

YRC Worldwide (NASDAQ: YRCW) has provided a brief update on shipping and yield metrics for the first two months of the second quarter of 2020, and the numbers raise concerns.

In a press release, the Overland Park, Kansas-based less-than-truckload (LTL) carrier reported an 18.6% year-over-year tonnage-per-day decline through the first two months of the quarter with revenue per hundredweight, or yield, declining 6.3%.

The carrier reported a 22.6% year-over-year decline in April tonnage with yield...

https://s29755.pcdn.co/news/shares-of-yrc-worldwide-sink-on-weak-midquarter-report

ArcBest sees trends rebound during May

ArcBest double on highway

In a filing with the U.S. Securities and Exchange Commission, ArcBest Corp. (NASDAQ: ARCB) reported sequential improvement during the month of May, supportive of recent industry commentary suggesting that the less-than-truckload (LTL) market may have bottomed in April.

The Fort Smith, Arkansas-based logistics provider reported a 22% year-over-year consolidated revenue decline through the first two months of the 2020 second quarter. The April-May period of 2020 has two less working days compared...

https://s29755.pcdn.co/news/arcbest-sees-trends-rebound-during-may

April the bottom for less-than-truckload?

Old Dominion triple on highway

Old Dominion Freight Line (NASDAQ: ODFL) reported a 16.2% year-over-year decline in revenue per day during May as tonnage declined 12.1% and revenue per hundredweight, or yield, moved lower.

The less-than-truckload (LTL) carrier reported the May tonnage decline was the combination of a 16.7% decline in shipments, partially offset by a 5.4% increase in weight per shipment.

So far through the second quarter of 2020, revenue per hundredweight is down 4.7% year-over-year, 1.4% lower excluding fuel...

https://s29755.pcdn.co/news/april-the-bottom-for-less-than-truckload

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