Arkansas Best (ABFS) NewsBite - ABFS Profit Declines on Fuel Costs

Posted on Wednesday, July 23, 2008 1:12 PM

Arkansas Best Corp. (ABFS) opened at 39.56. So far today, the stock has hit a low of 35.36 and a high of 39.56. ABFS is now trading at 38.09, down 6.84 (-17.29%). The stock hit its 52 week high of 45.13 in July and set its 52 week low of 17.94 in January. ABFS slipped through the second half of 2007, but has moved to the upside since the beginning of this year. Trucking company Arkansas Best announced today its second-quarter profit dropped 17.6% to $16.16 million, hurt by higher expenses for fuel and worker's compensation insurance. The company posted earnings of 64 cents per share on sales of $498.5 million, while analysts were expecting a profit of 75 cents per share on revenue of $481 million. Technical indicators for the stock are neutral and improving 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 bear-call credit spread above the $45 range. ABFS stock could rise up to 18.1% before expiration and this position would still be profitable. [RHF - Seven Summits Strategic Investments NewsBite]