Stifel lowers ArcBest stock price target to $81 on mixed quarterly results

Investing.com - Stifel has reduced its price target on ArcBest Corp (NASDAQ:ARCB) to $81.00 from $93.00 while maintaining a Buy rating following the company’s second-quarter earnings report. According to InvestingPro data, the stock has taken a significant hit, dropping nearly 15% in the past week, though analysis suggests the company is currently trading below its Fair Value.

ArcBest reported adjusted earnings per share of $1.36 for the second quarter of 2025, falling short of Stifel’s estimate of $1.44 and the Street’s consensus of $1.47. The company’s quarterly revenue came in 2% below consensus forecasts, with a 10 basis point miss on consolidated Operating Ratio. Trading at a P/E ratio of 10.67, the stock appears attractively valued relative to its near-term earnings growth potential, as highlighted by InvestingPro analysis.

In the Less-than-Truckload (LTL) segment, volumes exceeded Stifel’s expectations by 1.5%, but this positive development was more than offset by gross yield progression that was 2.1% worse than anticipated. This resulted in segment margins that were 90 basis points behind Stifel’s target.

The company’s Brokerage division revenue was 6% below Stifel’s model, though margins were 70 basis points ahead of expectations. Cost control initiatives helped move the division into profitability for the first time in two years.

July revenue trends are reportedly consistent with the second quarter, trending slightly softer than Stifel’s model, while margins quarter-to-date are in line to slightly better than expected. Despite recent challenges, InvestingPro analysis reveals 13 additional key insights about ArcBest’s financial health and future prospects, available in the comprehensive Pro Research Report.

In other recent news, ArcBest Corp reported its second-quarter 2025 earnings, which fell short of analysts’ expectations. The company announced an adjusted earnings per share of $1.36, a 32% decline from the previous year’s $1.98 for the same period. This figure was below both the BofA Securities estimate of $1.60 and the Street consensus of $1.46. Additionally, ArcBest’s revenue was reported at $1.02 billion, which did not meet the anticipated $1.04 billion. These results have led to a reassessment by BofA Securities, which lowered its price target for ArcBest to $78 from $86, while maintaining a Neutral rating. The earnings shortfall and subsequent price target adjustment reflect ongoing challenges in the company’s performance.

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