Latest news with #ODFL
Yahoo
04-06-2025
- Business
- Yahoo
Old Dominion Unveils Weak LTL Unit Performance for May 2025
Old Dominion Freight Line, Inc. (ODFL) has provided an update on the performance of its less-than-truckload (LTL) segment, which is its primary revenue generator, in May. Old Dominion's revenue per day fell 5.8% year over year in May 2025, owing to an 8.4% decrease in LTL tons per day, which was partially offset by an increase in LTL revenue per hundredweight. The reduction in LTL tons per day was owing to a 6.8% decrease in LTL shipments per day and a 1.9% decrease in LTL weight per shipment. Quarter to date, Old Dominion's LTL revenue per hundredweight and LTL revenue per hundredweight, excluding fuel surcharges, increased 3.2% and 5.6%, respectively, year over year. Marty Freeman, president and chief executive officer at Old Dominion, stated, 'Our revenue results for May reflect continued softness in the domestic economy as well as the impact of lower fuel prices on our yields. We believe that our market share has remained relatively consistent throughout this extended period of economic softness, despite the year-over-year decrease in our LTL volumes. Customers have continued to value our industry-leading service, which supports our ongoing yield management initiatives. While the macroeconomic environment remains uncertain, we will continue to focus on executing on our long-term strategic plan. Our service metrics and value proposition remain best in class, which we believe puts us in a unique position to win profitable market share and increase shareholder value over the long term.' ODFL currently carries a Zacks Rank #3 (Hold). Shares of ODFL have plunged 19.7% over the past six months compared with the 25.9% decline of the transportation-truck industry. Image Source: Zacks Investment Research Investors interested in the Transportation sector may also consider Copa Holdings CPA and SkyWest, Inc. (SKYW). CPA currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here. CPA has an expected earnings growth rate of 14.3% for the current year. The company has an impressive earnings surprise history. Its earnings outpaced the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average beat of 5.5%. Shares of CPA have risen 24.2% year to date. SkyWest, founded in 1972, is based in St. George and operates regional jets for major U.S. airlines. SKYW is the holding company for SkyWest Airlines, SkyWest Charter and SkyWest Leasing, an aircraft leasing company. SKYW currently carries a Zacks Rank of 2 (Buy). SKYW has an impressive earnings surprise track record, having surpassed the Zacks Consensus Estimate in each of the last four quarters. The average beat was 17.1%. The Zacks Consensus Estimate for current and next-year earnings has been revised upward over the past 60 days. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Old Dominion Freight Line, Inc. (ODFL) : Free Stock Analysis Report Copa Holdings, S.A. (CPA) : Free Stock Analysis Report SkyWest, Inc. (SKYW) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
04-06-2025
- Business
- Yahoo
3 Industrials Stocks in the Doghouse
Whether you see them or not, industrials businesses play a crucial part in our daily activities. But they are at the whim of volatile macroeconomic factors that influence capital spending (like interest rates), and the market seems convinced that demand will slow. Due to this bearish outlook, the industry has tumbled by 10.4% over the past six months. This performance was worse than the S&P 500's 1.9% loss. A cautious approach is imperative when dabbling in these companies as the losers can be left for dead when the cycle naturally turns and the winners consolidate. Taking that into account, here are three industrials stocks we're passing on. Market Cap: $34.45 billion With its name deriving from the Commonwealth of Virginia's nickname, Old Dominion (NASDAQ:ODFL) delivers less-than-truckload (LTL) and full-container load freight. Why Does ODFL Fall Short? Declining unit sales over the past two years indicate demand is soft and that the company may need to revise its strategy Falling earnings per share over the last two years has some investors worried as stock prices ultimately follow EPS over the long term Free cash flow margin dropped by 5.1 percentage points over the last five years, implying the company became more capital intensive as competition picked up Old Dominion Freight Line's stock price of $164 implies a valuation ratio of 28.9x forward P/E. Check out our free in-depth research report to learn more about why ODFL doesn't pass our bar. Market Cap: $484.2 million Acquiring Goodyear's farm tire business in 2005, Titan (NSYE:TWI) is a manufacturer and supplier of wheels, tires, and undercarriages used in off-highway vehicles such as construction vehicles. Why Do We Pass on TWI? Products and services are facing significant end-market challenges during this cycle as sales have declined by 7.4% annually over the last two years High input costs result in an inferior gross margin of 14% that must be offset through higher volumes Sales were less profitable over the last two years as its earnings per share fell by 93.4% annually, worse than its revenue declines Titan International is trading at $7.60 per share, or 21x forward P/E. Dive into our free research report to see why there are better opportunities than TWI. Market Cap: $2.29 billion The first third-party MRO approved by the FAA for Safety Management System Requirements, AAR (NYSE:AIR) is a provider of aircraft maintenance services Why Do We Think Twice About AIR? Sales trends were unexciting over the last five years as its 3.9% annual growth was below the typical industrials company Low free cash flow margin of 0.9% for the last five years gives it little breathing room, constraining its ability to self-fund growth or return capital to shareholders Underwhelming 6.3% return on capital reflects management's difficulties in finding profitable growth opportunities At $64.50 per share, AAR trades at 14.9x forward P/E. Read our free research report to see why you should think twice about including AIR in your portfolio, it's free. Donald Trump's victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs. While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today for free. Sign in to access your portfolio
Yahoo
25-04-2025
- Business
- Yahoo
Why Old Dominion Freight Line Stock Was Sliding Today
Shares of Old Dominion Freight Line (NASDAQ: ODFL) were falling today in sympathy with a disappointing report from rival Saia, another top less-than-truckload (LTL) carrier. Combined with the report from ODFL the day before, Saia's update is clear evidence that the trade war and weakening economy is already having an effect on the trucking sector. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue » As of 11:58 a.m. ET, Old Dominion stock was down 6.7%, while Saia stock had plunged 29.1%. Old Dominion managed to pass muster with its own first-quarter earnings report as results, though weak, lived up to analyst expectations. ODFL said revenue fell 5.8% to $1.37 billion, which matched estimates, while earnings per share dropped 11% to $1.19, which was ahead of expectations at $1.14. Management said the results reflected the "ongoing softness in the domestic economy." Tonnage per day was down 6.3%, reflecting weakening demand in the industry. Despite the weak results, management was able to reassure investors that it can weather the uncertainty in the economy. Saia's earnings report seemed to shift investor perception of industry dynamics as it reported an increase in revenue in the first quarter, but a sharp drop in profit, showing it prioritized market share gains over profitability. Its revenue growth was also slower than in previous quarter, indicating that demand was weakening. Saia's revenue rose 4.3% in the first quarter to $787.6 million, badly missing estimates at $811.5 million, while earnings per share tumbled from $3.38 to $1.86, well below expectations at $2.76. The results from both companies clearly show softening pricing dynamics in an industry where capacity is key, and Saia noted that shipments failed to grow sequentially through the quarter as they typically do, which it blamed on an "uncertain macroeconomic environment." It's unclear what's happening next with tariffs or the trade war, but things seem likely to get worse before they get better for the LTL sector as Trump's "Liberation Day" announcement didn't even go into effect until April, when the first quarter was over. These companies don't typically give guidance due to the volatility inherent in the business so investors should steel themselves for more challenges ahead. However, the LTL sector has historically been a winner, meaning over the long term these two stocks should be able to recover. Before you buy stock in Old Dominion Freight Line, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Old Dominion Freight Line wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $591,533!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $652,319!* Now, it's worth noting Stock Advisor's total average return is 859% — a market-crushing outperformance compared to 158% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of April 21, 2025 Jeremy Bowman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Old Dominion Freight Line. The Motley Fool recommends the following options: long January 2026 $195 calls on Old Dominion Freight Line and short January 2026 $200 calls on Old Dominion Freight Line. The Motley Fool has a disclosure policy. Why Old Dominion Freight Line Stock Was Sliding Today was originally published by The Motley Fool Sign in to access your portfolio
Yahoo
24-04-2025
- Business
- Yahoo
ODFL Q1 Earnings Call: Management Focuses on Cost Discipline Amid Freight Demand Uncertainty
Freight carrier Old Dominion (NASDAQ:ODFL) met Wall Street's revenue expectations in Q1 CY2025, but sales fell by 5.8% year on year to $1.37 billion. Its non-GAAP profit of $1.19 per share was 4.3% above analysts' consensus estimates. Is now the time to buy ODFL? Find out in our full research report (it's free). Revenue: $1.37 billion vs analyst estimates of $1.37 billion (5.8% year-on-year decline, in line) Adjusted EPS: $1.19 vs analyst estimates of $1.14 (4.3% beat) Adjusted EBITDA: $427.2 million vs analyst estimates of $412 million (31.1% margin, 3.7% beat) Operating Margin: 24.6%, down from 26.5% in the same quarter last year Free Cash Flow Margin: 17.8%, down from 21% in the same quarter last year Sales Volumes fell 6.5% year on year (-0.5% in the same quarter last year) Market Capitalization: $32.57 billion Old Dominion's first quarter results were shaped by persistent softness in freight volumes and ongoing macroeconomic challenges. Management attributed the year-on-year revenue decline primarily to lower shipment counts, stating that 'our revenue and earnings per diluted share both declined as a result' of weaker domestic economic activity. However, they emphasized operational discipline, highlighting improvements in productivity such as higher shipments per hour and continued best-in-class service metrics. Looking ahead, management signaled a cautious outlook, citing ongoing uncertainty in the economic environment and freight demand. CEO Marty Freeman noted, 'while there are still several workdays that remain in April, our month-to-date revenue per day has decreased 7% on a year-over-year basis.' The company is reducing capital expenditures for the remainder of the year and focusing on cost controls, while maintaining investments in network capacity to capture market share when volumes recover. Management reiterated that clarity around tariffs and regulations could be key to a sustained rebound in demand. Old Dominion's leadership outlined the main themes influencing first quarter performance and set the stage for their strategy moving forward. The focus remained on balancing yield management with operating density and managing costs in a soft demand environment. Freight Volume Decline: Management stressed that lower less-than-truckload (LTL) shipments per day, driven by weak industrial and retail demand, was the central factor impacting revenue. Despite the decline, market share remained stable. Yield Management Discipline: The company maintained a cost-based approach to pricing, achieving increases in revenue per hundredweight even as volumes fell. CFO Adam Satterfield said, 'we're fully committed to our long-term yield management strategy.' Operating Efficiency Investments: Old Dominion improved productivity metrics such as shipments per hour, despite reduced network density. Management cited ongoing investments in automation, technology, and training as key to these gains. Network and Capacity Expansion: The company continued to expand its service center network and fleet capacity over recent years, positioning itself for growth when demand returns. Management noted that over 30% excess capacity remains in its real estate network, with recent reductions in planned capital expenditures to align with current demand. Industry Capacity Constraints: Executives highlighted that industry-wide reductions in service centers, particularly after the exit of Yellow, have created a more capacity-constrained LTL market. This dynamic could support pricing power and market share gains as freight demand recovers. Management's outlook for the coming quarters centers on cautious optimism, with a focus on operational discipline and readiness to capture market share if freight volumes recover. The main themes shaping guidance are ongoing economic uncertainty, continued cost controls, and strategic capacity investments. Macroeconomic Uncertainty: Management cited ongoing uncertainty regarding tariffs, manufacturing investment, and customer confidence as key factors limiting a near-term recovery in freight volumes. Cost Management Focus: The company is reducing capital spending and discretionary expenses in response to lower freight activity, with a $125 million cut to 2025 capital expenditures. This should help protect margins until volume growth resumes. Positioning for Growth: Despite near-term headwinds, Old Dominion continues to invest in its network and workforce, aiming to capture outsized share gains when the freight market improves. Management highlighted that 'our network is built for more shipments per day than what we're handling right now.' Jordan Alliger (Goldman Sachs): Asked about typical margin seasonality and the impact of prolonged industry softness on margins; management explained that if revenue remains flat, only modest operating margin improvement is expected next quarter. Ravi Shanker (Morgan Stanley): Questioned the rationale behind capital expenditure reductions; CFO Adam Satterfield clarified that project deferrals are due to economic uncertainty, not a change in long-term strategy. Tom Wadewitz (UBS): Inquired about retail exposure and potential competitive threats from Amazon and UPS; management said retail is about 25-30% of business and does not see Amazon's LTL offering as a material threat. Scott Group (Wolfe Research): Probed on pricing power and whether Old Dominion can continue achieving price increases; management maintained that its value proposition allows for ongoing yield improvement even in a competitive environment. Bascome Majors (Susquehanna): Asked about changes in the competitive landscape and industry capacity following Yellow's exit; management emphasized that industry-wide capacity is down, with Old Dominion well positioned due to ongoing network investments. In the upcoming quarters, the StockStory team will watch (1) for signs of stabilization or improvement in LTL shipment volumes, (2) whether cost control initiatives and lower capital spending can help protect operating margins, and (3) continued progress in expanding network capacity for future growth. The interplay between macroeconomic clarity—especially regarding tariffs and manufacturing investment—and management's disciplined execution will be critical signposts for assessing business momentum. Old Dominion Freight Line currently trades at a forward P/E ratio of 28.1×. In the wake of earnings, is it a buy or sell? Find out in our free research report. The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 175% over the last five years. Stocks that made our list in 2019 include now familiar names such as Nvidia (+2,183% between December 2019 and December 2024) as well as under-the-radar businesses like Comfort Systems (+751% five-year return). Find your next big winner with StockStory today.
Yahoo
23-04-2025
- Business
- Yahoo
First look: Old Dominion Q1 earnings
Old Dominion Freight Line beat first-quarter expectations Wednesday before the market opened. The Thomasville, North Carolina-based less-than-truckload carrier reported earnings per share of $1.19, 5 cents higher than the consensus estimate but 15 cents lower year over year. The y/y decline was attributed to 'ongoing softness in the domestic economy.' 'While we were encouraged to see signs of improving demand during the first quarter, there continues to be uncertainty with the economy,' Old Dominion's (NASDAQ: ODFL) president and CEO, Marty Freeman, said in a Wednesday news release. Consolidated revenue of $1.37 billion was down 5.8% y/y but in line with management's guidance of $1.34 billion and $1.38 billion. Revenue per day fell 4.3% y/y as a 6.3%-per-day tonnage decline was only partially offset by a 2.2% increase in revenue per hundredweight, or yield. (Yield was up 4.1% excluding fuel surcharges.) The tonnage decline was the combination of a 5% decline in shipments and a 1.4% dip in weight per shipment. The yield metric was positively impacted by lower shipment weights. The company reported a 75.4% operating ratio, 190 basis points worse y/y but 50 bps better than in the fourth quarter. The result was ahead of management's guidance range calling for no change sequentially to 50 bps of deterioration. The company historically sees 100 to 150 bps of OR deterioration from the fourth to the first quarter. Salaries, wages and benefits expenses (as a percentage of revenue) increased 210 bps y/y. Average head count was down 4.7%, but shipments declined by a higher amount, pushing shipments per employee down 0.4%. Depreciation and amortization expenses were 70 bps y/y given growth-oriented investments in the network. Cost per shipment was up 3.3% with revenue per shipment up just 0.7%, resulting in a 260-bp negative spread. However, the unfavorable spread was cut by half from last quarter. Old Dominion continues to bear the costs of carrying excess network capacity ahead of a market upturn. Freeman said the company's model and strategic approach have 'weathered many periods of uncertainty through the years. … We continue to believe that by delivering superior service to our customers, maintaining our disciplined approach to yield management, controlling our expenses and consistently investing in our team and our network, we are uniquely positioned to respond to an improving economy.' Old Dominion lowered full-year capex guidance to $450 million from $575 million. The company plans to spend $210 million on real estate projects, $190 million for tractors and trailers, and $50 million for IT. The capex budget for real estate was cut by $90 million while plans around rolling stock were trimmed by $35 million. Old Dominion's 2024 capex equaled $771 million. Shares of ODFL were up 3.2% in pre-market trading on Wednesday. Old Dominion will host a conference call at 10 a.m. EDT on Wednesday to discuss first-quarter results. More FreightWaves articles by Todd Maiden: Forward Air ups Q1 EBITDA forecast Prologis sticks with 2025 outlook, but customers grow more cautious J.B. Hunt's intermodal bid season delivers mixed results The post First look: Old Dominion Q1 earnings appeared first on FreightWaves. Sign in to access your portfolio
