- Old Dominion reported third-quarter earnings per share (EPS) of $1.43, beating estimates but down from $1.55 year-over-year.
- Revenue for the quarter was $1.47 billion, a 3% decrease compared to the same period last year, slightly missing the estimate of $1.49 billion.
- Operating income fell by 9.7% year-over-year to $401.9 million, below the estimated $408.9 million.
- The operating ratio increased to 72.7% from 70.6% last year, closely aligning with the estimate of 72.6%.
- Purchased transportation costs were $30.9 million, a 0.3% increase from the previous year, slightly below the estimate of $31.1 million.
- LTL revenue per hundredweight rose by 1.5% year-over-year to $32.36, but this was less than the estimated $32.59.
- LTL revenue per hundredweight excluding fuel surcharges increased by 4.6% to $27.49, slightly above the estimate of $27.45.
- LTL revenue per shipment experienced a marginal rise of 0.1% to $477.70, which was lower than the estimate of $482.79.
- LTL tons decreased by 3.2% to 2.27 million, meeting the estimate.
- The number of workdays increased by 1.6% to 64, slightly surpassing the estimated 63.88 days.
- Marty Freeman, President and CEO, noted the challenging operating environment and strong prior-year comparables as factors leading to the company’s first year-over-year decline in quarterly revenue and earnings per diluted share.
- Freeman highlighted ongoing softness in the domestic economy but emphasized consistent market share and yield performance, supported by best-in-class service metrics like 99% on-time delivery and a cargo claims ratio of 0.1%.
- The decline in third-quarter revenue was attributed primarily to a 4.8% decrease in LTL tons per day, partially offset by a 1.5% increase in LTL revenue per hundredweight.
- Analyst ratings for the company include 5 buys, 15 holds, and 3 sells.
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Old Dominion Freight Line on Smartkarma
Analyst coverage of Old Dominion Freight Line on Smartkarma highlights positive outlooks from Baptista Research analysts. In their report titled “Old Dominion Freight Line Inc.: A Story Of Expanding Capacity and Network Optimization! – Major Drivers,” the analysts commend the company for resilient financial performance in the second quarter of 2024. Despite challenges in the domestic economy, Old Dominion demonstrated consistent revenue growth and operational enhancements, reflecting their ability to navigate economic headwinds. Baptista Research focuses on evaluating factors that could impact the company’s stock price and conducts an independent valuation using Discounted Cash Flow methodology.
In another analysis by Baptista Research, titled “Old Dominion Freight Line Inc.: How They Are Growing Volumes Through Operating Ratio Leverage! – Major Drivers,” the focus is on the company’s growth strategies. Despite a challenging economic environment, Old Dominion Freight Line achieved modest year-over-year increases in revenue and earnings per diluted share for two consecutive quarters. Notably, their first quarter of 2024 earnings per diluted share of $1.34 set a new company record for that period. This indicates a positive growth trajectory for Old Dominion as they continue to leverage their operating ratios to drive volume growth.
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 well-positioned for long-term success based on its Smartkarma Smart Scores. With a solid Growth score of 4, the company is expected to expand and increase its market presence steadily over time. Additionally, Old Dominion has demonstrated resilience with a score of 4, indicating its ability to weather economic downturns or industry challenges effectively. This resilience factor bodes well for the company’s sustainability and longevity in the market.
Furthermore, the Momentum score of 4 suggests that Old Dominion Freight Line is gaining traction and momentum within the industry, which could lead to enhanced performance and potential growth opportunities in the future. Although the company’s Value and Dividend scores are at 2, its strong performance in Growth, Resilience, and Momentum positions Old Dominion well for continued success in the long term.
### Summary: ###
Old Dominion Freight Line, Inc. is an inter-regional and multi-regional motor carrier that specializes in transporting less-than-truckload shipments of various general commodities. The company serves 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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