NEW YORK (
) has been downgraded by TheStreet Ratings from hold to sell. Among the areas we feel are negative, one of the most important has been unimpressive growth in net income over time.
Highlights from the ratings report include:
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Road & Rail industry. The net income has significantly decreased by 41.8% when compared to the same quarter one year ago, falling from -$12.81 million to -$18.16 million.
- Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. Compared to other companies in the Road & Rail industry and the overall market, ARKANSAS BEST CORP's return on equity significantly trails that of both the industry average and the S&P 500.
- Compared to where it was trading one year ago, ABFS is down 47.20% to its most recent closing price of 12.99. Looking ahead, our view is that this stock still does not have good upside potential and may even suffer further declines.
- ARKANSAS BEST CORP's earnings per share declined by 39.2% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, ARKANSAS BEST CORP turned its bottom line around by earning $0.20 versus -$1.30 in the prior year. This year, the market expects an improvement in earnings ($0.24 versus $0.20).
- ABFS's revenue growth trails the industry average of 12.5%. Since the same quarter one year prior, revenues slightly increased by 1.4%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
Arkansas Best Corporation, through its subsidiaries, engages in motor carrier freight transportation in the United States. The company provides shipping services to its customers by transporting various large and small shipments to geographically dispersed destinations. The company has a P/E ratio of 433, above the S&P 500 P/E ratio of 17.7. Arkansas Best has a market cap of $330.8 million and is part of the
industry. Shares are down 32.6% year to date as of the close of trading on Tuesday.
You can view the full
or get investment ideas from our
-- Written by a member of TheStreet Ratings Staff