- Old Dominion’s 4Q earnings per share (EPS) were $1.23, surpassing the estimated $1.16 but lower than the previous year’s $1.47.
- Revenue totaled $1.39 billion, down 7.3% year-over-year, beating the estimate of $1.37 billion.
- Operating income fell 21% year-over-year to $334.0 million, slightly above the forecast of $329.6 million.
- The operating ratio was 75.9%, aligning with estimates, up from 71.8% the previous year.
- Purchased transportation costs were $29.2 million, a reduction of 7.4% from the previous year, close to the $29 million predicted.
- Less-than-truckload (LTL) revenue per hundredweight was $32.10, a minor decrease of 0.4% year-over-year, slightly under the $32.11 estimate.
- Excluding fuel surcharges, LTL revenue per hundredweight rose 3.8% to $27.52, exceeding the expected $27.48.
- LTL revenue per shipment decreased by 1.1% to $481.91, compared to the predicted $478.89.
- LTL tons totaled 2.13 million, down 6.7% year-over-year, marginally surpassing the estimate of 2.12 million.
- The number of workdays increased by 1.6% from the previous year to 62, closely matching the forecast of 61.96 days.
- The company noted that excluding fuel surcharges, the increase in LTL revenue per hundredweight was due to successful long-term yield management.
- A significant revenue decrease was attributed chiefly to an 8.2% decline in LTL tons per day.
- Despite these challenges, Old Dominion expressed confidence in its ability to capture market share when industry demand improves.
- The macroeconomic environment has created persistent demand challenges for the business, according to Mr. Freeman.
- Analyst ratings include 3 buys, 17 holds, and 4 sells.
“`
Old Dominion Freight Line on Smartkarma
Analysts on Smartkarma, such as Baptista Research, are closely monitoring Old Dominion Freight Line, a key player in the transportation industry. In their recent report titled “Old Dominion Freight Line: Dealing With Capacity Management Vulnerability & Other Challenges! – Major Drivers,” they highlighted the company’s performance during a challenging economic period. Despite a 3.0% decline in revenue to $1.47 billion, the company managed to partially offset a 4.8% drop in LTL tons per day with a 1.5% increase in LTL revenue per hundredweight.
In another report by Baptista Research, titled “Old Dominion Freight Line Inc.: A Story Of Expanding Capacity and Network Optimization! – Major Drivers,” the focus was on the company’s resilience in the second quarter of 2024. Despite facing a stagnant domestic economy, Old Dominion Freight Line showcased consistent revenue growth and operational improvements. Baptista Research emphasized the company’s ability to navigate economic challenges while maintaining a commitment to service quality and prudent management practices. The report also delves into factors that could impact the company’s stock price in the near future and includes an independent valuation using a Discounted Cash Flow methodology.
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
Based on the Smartkarma Smart Scores, Old Dominion Freight Line shows promising long-term prospects. With a Growth score of 4 and a Resilience score of 4, the company appears to be well-positioned for future expansion and able to withstand economic challenges. These scores indicate a positive outlook for the company’s ability to grow and navigate through uncertainties.
Despite having Value and Dividend scores of 2 each, which may suggest some room for improvement in these areas, Old Dominion Freight Line‘s overall momentum score of 3 indicates a steady performance trajectory. This balanced set of scores implies a stable foundation for the company to build upon its strengths and work towards enhancing shareholder value in the long run.
### Old Dominion Freight Line, Inc. is an inter-regional and multi-regional motor carrier. The Company primarily transports less-than-truckload shipments of general commodities, such as consumer goods, textiles, and capital goods. Old Dominion serves regional markets throughout 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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