Arkansas Best (ABFS) NewsBite - Arkansas Best Reports Surprising Q1 Earnings

Posted on Wednesday, April 23, 2008 12:07 PM

Arkansas Best Corp. (ABFS) opened at 35.79. So far today, the stock has hit a low of 34.65 and a high of 36.15. ABFS is now trading at 35.80, up 4.36 (12.18%). The stock hit its 52 week high of 44.97 in April and set its 52 week low of 17.94 in January. ABFS fell through 2007, but has been stronger since the beginning of this year. Trucking company Arkansas Best announced today its first-quarter earnings soared 78% to $8.5 million, as cost cuts and improved efficiency offset poor pricing and higher fuel expenses. The company posted earnings of 34 cents per share on revenue of $447.5 million, exceeding analysts' predictions for a profit of 18 cents per share on revenue of $433.8 million. On the news, a Morgan Keegan analyst upped the stock to "Outperform" from "Market Perform." Technical indicators for the stock are bullish but slightly deteriorating while S&P gives ABFS a positive 4 STARS (out of 5) buy rating. If you’re looking for a hedged play on this stock, consider a September bull-put credit spread below the $25 range. ABFS stock could fall up to 30.2% before expiration and this position would still be profitable. [RHF - Seven Summits Strategic Investments NewsBite]