Sumting Wong
TB Lurker
- Credits
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LTL carriers off to hot Q4 start
Less-than-truckload carriers report strong October results. But one analyst questions if the stocks have run too far ahead of results.
www.freightwaves.com
In its quarterly filing with the Securities and Exchange Commission, ArcBest (NASDAQ: ARCB) said daily billed revenue in its asset-based segment, which includes LTL, was up 20% year-over-year. This was in line with the growth rate the carrier reported in the third quarter.
The revenue increase was comprised of an 18% year-over-year jump in yield, inclusive of fuel surcharges, and a 1% increase in daily tonnage. A “strong pricing environment” with “increased customer business levels” were cited as catalysts.
Old Dominion Freight Line (NASDAQ: ODFL) recorded a 36% year-over-year increase in daily revenue during October. Tonnage per day was up 16% (daily shipments up 19% with weight per shipment down 3%) and yields (including fuel revenue) moved 17% higher.
However, the carrier muted some of the excitement around the top-line surge on its third-quarter call with analysts, saying the record growth accompanies some expected cost catch-up over the next couple of quarters. It’s also looking to minimize its reliance on third-party linehaul capacity, which has increased alongside record growth and requires additional investment.