KeyBanc Downgrades Arkansas Best (ABFS) to 'Hold' After Weak Q1
Tweet
Share
E-mailGet Alerts ABFS Hot Sheet
Price: $39.42 --0%
Rating Summary:
2 Buy, 9 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
2 Buy, 9 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Join SI Premium – FREE
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.
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.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Tesla plans 'flying' Roadster stunt at SpaceX Texas site as early as August
- Newton Golf Company (NWTG) Reports Q2 Loss of $0.49
- Silexion Therapeutics (SLXN) Tops Q2 EPS by 793c
Create E-mail Alert Related Categories
Analyst EPS Change, Analyst EPS View, DowngradesRelated Entities
KeyBanc, EarningsSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
