Can’t tell by the stock, down $18Looks like another good first quarter (92.0 OR) for ABF Freight!!!
As has been the case lately, the asset-light (Panther, MoLo, etc.) was lagging behind.
Competitors???? Besides OD, who else was in the 70s?
But still well above $100.00 a share. And this is the first quarter of the year. This is usually the worst quarter. Let's hope the next 3 quarters are great and the best profit sharing is yet to come!
The only others in the, 70’s, are the 2 “industry experts”, who bad mouth people who are wanting to retire with the same benefits, that the experts themselves have collected for many years.
I believe a few private LTL Carriers are operating the 70's
Great point, the ABF Freight sector seems to be the profit driver for Arcbest
ABF’s OR improved 3/10th’s of a point when compared to 2023’s OR (1st quarter). So…….how did you determine they are going the wrong direction???
They don’t get it. Good one.
That sounds like a cop out right there....if you had an answer you would have been front and center with it....
exactly, for example 2021 and 2022 those private carriers such as Estes and R&L moved 2.5 times more shipments a day than ABF and R&Ls revenue was less than ABFs revenue and Estes was only 1 billion more in revenue with 2.5 times more shipments per day, yes I know we aren’t talking net income but you get what I’m saying, R&L moved an average of 49,000 shipments a day and had revenue of 2.4 billion and Estes moved an average of 49,198 shipments a day with a revenue of 3.7 billion now ABF only moved an average of 19,895 shipments a day but had a revenue of 2.5 billion,(meaning ABF is moving the best paying freight out there) i guarantee if ABF was a non union outfit there numbers would be right up there with Old dominion. But luckily for me they are union …..
The problem is not ABF, the problem is the 21 Million loss on Phantom Auto which ceased operations in the first quarter. Arcbest invested 25 million in that remote operated forklift startup in 2022. I wonder who in corporate is going to raise their hand & take credit for that investment? If not for ABF the corporation would be in trouble.
Doc, I disagree with your last 2 posts. Failure is not always a bad thing. In business, a percentage of revenue should be invested in new ideas and new ventures. It only takes one investment to become the leader. Even if the previous 99 investments failed. And even when an investment fails, a corporation can take a tax loss and get the government to pay a percentage of the loss. The trick is to produce enough revenue, and keep the investments small enough, that failure doesn't harm the corporation. IMO.
A company must have growth to survive. Diversity can be good. The automated fork lifts may have seemed to be a fit for ABF but apparently it did not work. I remember several investments ABF made over the years that did not make a profit. Mr. Young always said that any business that is not profitable would be sold. I would have liked to see that 25 Million invested in new equipment or real estate.
Too many factors such as length of haul, class of freight, FAK and we don't know the profit margins of the private carriers to make an exact comparison.
