KeyBanc Downgrades Arkansas Best (ABFS) to 'Hold' After Weak Q1
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Price: $17.40 +1.81%
Rating Summary:
4 Buy, 7 Hold, 2 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 11 | Down: 35 | New: 23
Rating Summary:
4 Buy, 7 Hold, 2 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 11 | Down: 35 | New: 23
Trade ABFS Now!
KeyBanc downgraded Arkansas Best (NASDAQ: ABFS) from Buy to Hold.
Analyst, Todd Fowler, said, "1Q12 results were significantly weaker than expected. Reported results include several unusual items that could be viewed as non-recurring (workers compensation, personnel investment, tax impact of operating loss), but also relate to operational and strategic decisions. In our view, pricing actions in 2011 have allowed the Company to restore yields to pre-recession levels; however, we underestimated the corresponding impact on tonnage, network utilization, margins and earnings. Reflecting our view for a gradual recovery in freight activity and excess capacity industry-wide, we believe lower tonnage levels could now have a greater impact on results than previously
anticipated. That said, with shares trading near tangible book, significant earnings leverage to improvements in volume and price, and the potential for
favorable labor negotiations and lawsuit settlements, we believe meaningful
downside is limited at current levels, but view our rating as more appropriate."
FY12 EPS estimate cut from $0.95 to $0.44.
For an analyst ratings summary and ratings history on Arkansas Best click here. For more ratings news on Arkansas Best click here.
Shares of Arkansas Best closed at $17.38 yesterday, with a 52 week range of $14.22-$27.44.
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Analyst, Todd Fowler, said, "1Q12 results were significantly weaker than expected. Reported results include several unusual items that could be viewed as non-recurring (workers compensation, personnel investment, tax impact of operating loss), but also relate to operational and strategic decisions. In our view, pricing actions in 2011 have allowed the Company to restore yields to pre-recession levels; however, we underestimated the corresponding impact on tonnage, network utilization, margins and earnings. Reflecting our view for a gradual recovery in freight activity and excess capacity industry-wide, we believe lower tonnage levels could now have a greater impact on results than previously
anticipated. That said, with shares trading near tangible book, significant earnings leverage to improvements in volume and price, and the potential for
favorable labor negotiations and lawsuit settlements, we believe meaningful
downside is limited at current levels, but view our rating as more appropriate."
FY12 EPS estimate cut from $0.95 to $0.44.
For an analyst ratings summary and ratings history on Arkansas Best click here. For more ratings news on Arkansas Best click here.
Shares of Arkansas Best closed at $17.38 yesterday, with a 52 week range of $14.22-$27.44.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here
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