- Old Dominion’s Earnings Per Share (EPS) for Q2 2024 was $1.48, exceeding the previous year’s $1.33 and the estimate of $1.45.
- Revenue stood at $1.50 billion, marking a 6.1% year-over-year increase and matching the estimate.
- Operating income increased by 7.7% year-over-year to $421.7 million, surpassing the estimated $419.1 million.
- Improvement in operating ratio to 71.9%, compared to 72.3% last year, and slightly better than the 72% estimate.
- Purchased transportation expenses rose by 12% year-over-year to $32.0 million, above the estimated $30.6 million.
- Less-Than-Truckload (LTL) revenue per hundredweight was $31.77, up 4.4% year-over-year but just below the estimate of $31.80.
- Excluding fuel surcharges, LTL revenue per hundredweight increased by 4.9% year-over-year to $26.75, slightly above the estimate of $26.68.
- LTL revenue per shipment grew by 3.2% year-over-year to $479.48, close to the estimate of $481.96.
- The second quarter had 64 workdays, the same as the previous year and consistent with estimates.
- CEO Marty Freeman attributed the 6.1% revenue growth to a 4.4% increase in LTL revenue per hundredweight and a 1.9% rise in LTL tons per day.
- Freeman noted that the increase in LTL tons per day was due to a 3.1% rise in LTL shipments per day, though this was partially offset by a 1.2% decrease in weight per shipment.
- Earnings per diluted share increased by 11.3% for the quarter to $1.48, driven by the growth in revenue and improved operating ratio.
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Old Dominion Freight Line on Smartkarma
On Smartkarma, top independent analysts like Baptista Research are providing insightful coverage of Old Dominion Freight Line. In a recent report titled “Old Dominion Freight Line Inc.: How They Are Growing Volumes Through Operating Ratio Leverage! – Major Drivers,” Baptista Research highlighted the company’s ability to navigate a challenging economic environment. Despite facing softness in the domestic economy, Old Dominion reported modest year-over-year revenue and earnings per share increases. The company’s Q1 2024 earnings per diluted share of $1.34 set a new company record, showing resilience and growth.
In another report by Baptista Research titled “Old Dominion Freight Line Inc.: Investing In Technology & Capacity For Expansion In 2024 & Beyond! – Major Drivers,” the analysts discussed the company’s strategic moves in enhancing technology and capacity for future growth. Despite a slowdown in the domestic economy impacting volume levels, Old Dominion saw a quarterly revenue and earnings per share increase for the first time in 2023. This was attributed to an improvement in the quality of its revenue streams, indicating a path towards expansion and sustainability for the company.
A look at Old Dominion Freight Line Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 2 | |
| Growth | 4 | |
| Resilience | 4 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 3.0 |
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., a leading inter-regional and multi-regional motor carrier, shows a promising long-term outlook based on its Smartkarma Smart Scores. With solid scores in Growth and Resilience at 4 each, the company is positioned for sustained expansion and proven ability to weather economic uncertainties. Additionally, its Momentum score of 3 indicates a positive trend in market performance.
In contrast, Old Dominion Freight Line‘s scores in Value and Dividend are at 2 each, suggesting potential areas for improvement in terms of perceived value and dividend payout. Overall, with a favorable outlook in growth potential and operational strength, Old Dominion Freight Line demonstrates resilience in serving regional markets across 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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