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Investing.com - UBS has lowered its price target on ArcBest Corp (NASDAQ:ARCB) to $73.00 from $84.00 while maintaining a Neutral rating on the stock following the company’s second-quarter earnings report. The $1.67 billion market cap company, which according to InvestingPro analysis is currently trading below its Fair Value, has seen its stock take a significant hit recently, dropping nearly 15% in the past week.
ArcBest reported second-quarter earnings per share of $1.36, falling short of both UBS estimates and consensus expectations of $1.46 and $1.47, respectively. The company’s tonnage per day increased 4.3% year-over-year, aligning with UBS projections, while revenue per hundredweight performed approximately 60 basis points better than anticipated. Trading at a P/E ratio of 10.61x, the stock appears attractively valued relative to its peers, with InvestingPro data showing the company has maintained dividend payments for 23 consecutive years.
The transportation company’s Asset Based operating ratio in the second quarter was 92.8%, slightly underperforming UBS’s estimate of 92.5%. According to UBS, the primary factor behind this margin difference was higher purchased transportation costs, as ArcBest increased these expenses in June to maintain strong service levels during peak vacation season.
ArcBest’s Asset Light segment posted operating income of $1.1 million in the second quarter, marking its first positive EBIT result since the second quarter of 2023. UBS had projected $0.2 million in operating income for this segment during the period.
The price target reduction represents a $11 decrease from UBS’s previous valuation of the freight transportation services provider.
In other recent news, ArcBest Corp reported its second-quarter 2025 earnings, which did not meet expectations. The company posted an adjusted earnings per share of $1.36, which was below the anticipated $1.46 and represented a 32% decline from the same period last year. Revenue for the quarter was reported at $1.02 billion, falling short of the expected $1.04 billion. Stifel responded to these results by lowering its price target for ArcBest to $81, while maintaining a Buy rating. Similarly, BofA Securities reduced its price target to $78, maintaining a Neutral rating on the stock. These adjustments reflect the company’s performance, with both firms noting the earnings miss. The company’s operating ratio also missed forecasts by 10 basis points. These developments highlight the challenges ArcBest faced in the quarter, particularly in its earnings and revenue performance.
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