Deutsche Bank-Early Morning Haul Earnings (ARCB, WERN), +Rail service-106395205

DeutscheBankIndustryDateResearch7February2024EarlyMorningHaulNorthAmericaIndustryUpdateCanadaUnitedStatesIndustrialsAirFreight&LogisticsEarnings(ARCB,WERN),+RailserviceARCBearnings-Lessthantruckload(LTL)companyARCBreportedgood4QAmitMehrotraoperatingresultsyesterday.Thecompany’sasset-basedbusinessachievedORofResearchAnalyst87.7%,whichwasabout100basispointsbettersequentially.Underlyingoperating+1-212-250-2076profitwas12%betterthanourmodelandhigh-single-digit%betterprofitsinassetbased(similarbeatvs.consensus).Asset-basedrevenuesweredownbyover$30BenMohrmillionsequentiallybutprofitswereup,highlightinggoodperformanceoncostsResearchAnalyst(totalassetbasedopexdown7%sequentiallyledbybigdeclinesinrents,+1-212-250-1708purchasedtransportationandsharedservices).Butwealsonotevolumewaslower,withtonnageperdaydown6%sequentiallyandshipmentsdownjustover2%ChrisRobertsonsequentially.ThecompanynotedJanuarytotaldailytonnagewasdown18%yearResearchAnalystoveryearwithshipmentsdown9%yearoveryear,thoughyieldisup13%and+1-212-250-9995revenuepershipmentisup2%.TheJanuaryvolumeupdatewaslikelyimpactedbyweather,thoughit’squiteabitweakeryearoveryear.ThebottomlineisARCB'sKeyChangesoperatingresultsweregoodinthecontextofastilllacklustermarket,andwhilethecompanycontinuestoseetheORbenefitfromamoredisciplinedpricingstrategy,CompanyTargetPriceRatingv...