ArcBest Corporation ARCB is scheduled to report second-quarter 2022 results on Jul 29, before market open.

The Zacks Consensus Estimate for ARCB’s second-quarter earnings has been revised 1.3% upward in the past 60 days. Moreover, ArcBesthas an impressive surprise history, with its earnings having outperformed the Zacks Consensus Estimate in each of the preceding four quarters, the average being 25.6%.

Against this backdrop, let’s look at the factors likely to have impacted ArcBest’s performance in second-quarter 2022.

Strong freight market conditions, increased customer demand and favorable pricing are expected to have driven the Asset-Based segment’s (accounting for the bulk of the top line) performance in the June quarter. Network resource allocation to cater to less-than-truckload (LTL) customers is likely to have boosted tonnage and shipments in the segment.

The Zacks Consensus Estimate for revenues at the Asset-Based segment indicates a 9.5% increase from first-quarter 2022 actuals. The Asset-Light segment is expected to have benefited from favorable market rates owing to strong customer demand amid capacity constraints.

However, supply-chain disruptions might have resulted softened shipments in the second quarter. Escalating operating expenses, primarily due to increased salaries, wages, and benefits and fuel expenses at the Asset-Based segment, and higher purchased transportation costs at the Asset-Light unit, are likely to have dented ArcBest’s bottom line in the to-be-reported quarter.

Earnings Whispers

Our proven Zacks model does not conclusively predict an earnings beat for ArcBest this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. However, this is not the case here, as elaborated below. You can see the complete list of today’s Zacks #1 Rank stocks here.

Earnings ESP: ArcBest has an Earnings ESP of -0.21%% as the Most Accurate Estimate is pegged at $3.90, below the Zacks Consensus Estimate of $3.91. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: ArcBest currently sports a Zacks Rank of 1.

Highlights of Q1 Earnings

ArcBest’s first-quarter 2022 earnings (excluding 40 cents from non-recurring items) of $3.08 per share beat the Zacks Consensus Estimate of $2.08. The bottom line improved more than 100% year over year. Quarterly revenues of $1,335.1 million also surpassed the Zacks Consensus Estimate by 3.4%. The top line surged 61% year over year.