ArcBest increases share repurchase authorization to $125 million

FORT SMITH, Ark. - ArcBest (NASDAQ:ARCB), an integrated logistics company with a market capitalization of $1.63 billion, announced Monday that its board of directors has approved an increase in its share repurchase authorization to a total of $125 million. According to InvestingPro data, management has been actively pursuing share buybacks, with the stock currently trading at an attractive P/E ratio of 10.5.

Under the program, the company may repurchase shares of its common stock through various methods, including open market transactions, privately negotiated purchases, and Rule 10b5-1 trading plans. The timing and amount of repurchases will depend on market conditions and other factors.

"Our share repurchase authorization reflects the board’s confidence in ArcBest’s strategy and long-term outlook," said Judy R. McReynolds, ArcBest Chairman and CEO. "We remain committed to a balanced and disciplined capital allocation approach."

The company noted that the program does not obligate ArcBest to repurchase any specific number of shares and may be modified, suspended, or terminated at any time at the company’s discretion.

Founded in 1923, ArcBest now employs 14,000 people across 250 campuses and service centers, providing ground, air, and ocean transportation services along with supply chain management solutions.

The announcement was made in a press release statement issued by the company.

In other recent news, ArcBest Corp reported its second-quarter earnings, revealing a shortfall in expectations. The company posted an adjusted earnings per share of $1.36, which fell below the consensus estimate of $1.47 and was also lower than estimates from UBS, Stifel, and BofA Securities. ArcBest’s revenue for the quarter was $1.02 billion, slightly under the anticipated $1.04 billion. Analysts have responded to these earnings results by adjusting their price targets for ArcBest. UBS lowered its price target to $73, maintaining a Neutral rating, while Stifel reduced its target to $81 but kept a Buy rating. BofA Securities also decreased its price target to $78, citing weaknesses in the less-than-truckload (LTL) sector, and maintained a Neutral rating. Despite the challenges, ArcBest reported a 4.3% year-over-year increase in tonnage per day, aligning with UBS projections. Revenue per hundredweight performed slightly better than expected, exceeding forecasts by approximately 60 basis points.

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