- Old Dominion’s first-quarter earnings per share (EPS) were $1.19, surpassing the estimate of $1.14 but falling short of last year’s $1.34.
- Revenue for the first quarter was $1.37 billion, slightly in line with expectations but 5.8% lower than the previous year.
- Operating income reached $338.1 million, a decrease of 13% year-over-year, yet exceeded the estimate of $324.1 million.
- The operating ratio increased to 75.4% from last year’s 73.5%, but was better than the projected 76.3%.
- Purchased transportation costs were $27.7 million, down 9.9% from last year, and below the estimated $29.6 million.
- LTL (Less-Than-Truckload) revenue per hundredweight increased by 2.2% year-over-year to $32.67, outperforming the estimate of $32.45.
- Excluding fuel surcharges, LTL revenue per hundredweight rose by 4.1% to $27.89, above the estimated $27.71.
- LTL revenue per shipment rose slightly by 0.7% year-over-year to $485.79, surpassing the estimate of $483.81.
- The total LTL tons transported was 2.09 million, a decline of 7.8% from last year and matching the estimate.
- There were 63 workdays in the quarter, a slight decrease of 1.6% from the previous year, aligning with the estimate.
- Old Dominion expects capital expenditures for 2025 to be approximately $450 million, a reduction of $125 million from its initial plan.
- A 6.3% decrease in LTL tons per day led to a revenue drop, though partially offset by higher LTL revenue per hundredweight.
- Overhead costs as a percentage of revenue increased by 130 basis points due to depreciation.
- The company maintained an impressive on-time service performance rate of 99% and kept cargo claims ratio below 0.1% in the first quarter.
- Depreciation expenses increased as a percentage of revenue, related to their capital expenditure initiatives aimed at market share growth.
- The stock has a mixed sentiment with 6 buy ratings, 16 hold ratings, and 3 sell ratings.
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Old Dominion Freight Line on Smartkarma
Analysts at Baptista Research are closely monitoring Old Dominion Freight Line‘s performance on Smartkarma, an independent investment research network. In their report titled “Old Dominion Freight: Inside the LTL Leader’s Plan to Maintain Its Competitive Edge!“, the analysts highlight the company’s resilience in the face of economic challenges. Despite a decline in revenue, Old Dominion Freight Line demonstrated strong operational discipline and superior customer service, signaling positive prospects for the future.
In another insightful report by Baptista Research, titled “Old Dominion Freight Line: Dealing With Capacity Management Vulnerability & Other Challenges – Major Drivers”, the analysts delve into the company’s third-quarter earnings for 2024. They noted a decrease in revenue, attributed to a drop in LTL tons per day. However, this decline was partly offset by an increase in LTL revenue per hundredweight. Overall, the analysts provide a comprehensive analysis of Old Dominion Freight Line‘s performance and the challenges it faces in the current economic environment.
A look at Old Dominion Freight Line Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 2 | |
| Growth | 4 | |
| Resilience | 4 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.2 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Old Dominion Freight Line, Inc. is positioned well for long-term growth based on its Smartkarma Smart Scores. With a strong focus on Growth, Resilience, and Momentum, the company shows promising potential for future performance. Its above-average scores in these key areas indicate a company that is actively expanding, adapting to challenges, and maintaining a positive trajectory in the market.
While Old Dominion Freight Line may not score as high in terms of Value and Dividend, its overall outlook remains positive. As an inter-regional and multi-regional motor carrier specializing in less-than-truckload shipments of various commodities, the company’s strategic positioning within the industry, coupled with its solid Growth, Resilience, and Momentum scores, suggest a bright future ahead for Old Dominion Freight Line.
Summary of the description of the company: Old Dominion Freight Line, Inc. is an inter-regional and multi-regional motor carrier that primarily transports less-than-truckload shipments of general commodities across regional markets in the United States.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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