Latest news with #OldDominionFreightLine
Yahoo
8 hours ago
- Business
- Yahoo
BofA Lowers PT for Old Dominion (ODFL), Maintains Neutral Rating
On June 4, BofA Securities lowered its price target for Old Dominion Freight Line, Inc. (NASDAQ:ODFL) from $183 to $172 and kept a Neutral rating on the stock. Ken Hoexter from BofA made the update following Old Dominion's mid-second quarter 2025 result. The American transport and logistics company reported a 5.8% decline year-over-year in revenue per day for May 2025, missing BofA's estimate of a 3.9% decline. Despite such, the company maintains a healthy gross profit margin of 39.75% and a trailing 12-month revenue of $5.73 billion. A large cargo ship navigating a busy port, its scale highlighting the company's marine transportation services. Hoexter also added that the company saw a 6.8% decline in shipments per day, missing the BofA's target of a 6.5% decline. The analyst also pointed out that the economic impact of the China tariffs has contributed to the weak results. Old Dominion's CEO, on the other hand, states that the company is maintaining its market share and profitability. Old Dominion Freight Line, Inc. (NASDAQ:ODFL) is a freight transportation and logistics services company that primarily offers services in the United States, Canada, and Mexico . The company also offers household moving services and expedited logistics. While we acknowledge the potential of ODFL as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock. Read Next: and . Disclosure. None.
Yahoo
2 days ago
- Business
- Yahoo
XPO sees modest tonnage decline in May
Less-than-truckload carrier XPO announced Wednesday a continuation of modest volume declines during May as the industry awaits an inflection in demand. The Greenwich, Connecticut-based company said tonnage per day was down 5.7% year over year during the month – the combination of a 5% decline in shipments and a 0.7% decline in weight per shipment. The update was in line with the company's prior guidance calling for a tonnage decline similar to what it experienced in April (down 5.5% y/y). The monthly declines are a modest improvement from the first quarter (down 7.5% y/y) and appear to be largely in line with typical seasonality. XPO's (NYSE: XPO) y/y comps get easier in the second half of the year as modest y/y increases recorded in the second quarter of 2024 give way to more pronounced declines in the third and fourth quarters of last year. January marked the low for XPO's tonnage on a two-year-stacked comp (down 9.6%). April and May were off 2% and 3%, respectively. XPO is again likely to be the only LTL carrier to see y/y margin improvement in the second quarter. The company previously guided second-quarter yield growth to be in line with the first quarter (up 6.9% y/y excluding fuel surcharges). Improved pricing from service enhancements and a change in freight mix to local accounts (which carry higher margins) were behind the pricing guide. The combination of a continuation of seasonal volume trends along with improved pricing and idiosyncratic efficiency initiatives drove the company to guide to the high end (or better) of the normal sequential margin change rate of 250 to 300 basis points from the first to the second quarter. That implies an 83% OR (inverse of operating margin) for the second quarter, which would be 20 bps better y/y. XPO also reiterated on its first-quarter call in April a full-year 2025 outlook for 150 bps of y/y OR improvement. That guidance follows 370 bps of OR improvement over the past two years, which, too, bucked the industry trend. Carrier Old Dominion Freight Line (NASDAQ: ODFL) also reported Wednesday an in-line update for May. More FreightWaves articles by Todd Maiden: Old Dominion's May update in line with prior Q2 guide Transportation pricing grows faster than capacity again in May Yellow Corp. to sell 4 terminals for $6.8M The post XPO sees modest tonnage decline in May appeared first on FreightWaves. Sign in to access your portfolio
Yahoo
3 days ago
- Business
- Yahoo
Old Dominion's May update in line with prior Q2 guide
Less-than-truckload carrier Old Dominion Freight Line saw 'continued softness' in May as revenue per day fell 5.8% year over year. Lower volumes were again only partially offset by higher yields. The trend is a continuation from what was experienced in April and during the first quarter. Old Dominion (NASDAQ: ODFL) reported an 8.4% y/y decline in tonnage per day during May as shipments fell 6.8% and weight per shipment was down 1.9%. The carrier's April tonnage was off 8.8%, which followed a 6.3% decline in the first quarter. The monthly tonnage declines continue to moderate on a two-year-stacked comparison. May tonnage was down 6.9% (down 6.5% in April), which is an improvement from the low-double-digit declines recorded last year and into the first quarter. A prolonged freight downturn and a sagging industrial sector have weighed on LTL demand. The Purchasing Managers' Index (PMI) – a bellwether for manufacturing activity – remained slightly in contraction territory during May at 48.5. The index has been underwater in 29 of the past 31 months. The PMI dataset typically leads inflections in LTL volumes by approximately three months. The PMI new orders subindex – a proxy for future near-term activity – improved slightly but remained in decline at 47.6. The new export orders subindex continued to see the overhang of tariffs, falling into 'extreme contraction' at 40.1. The LTL industry continues to capture rate increases despite the demand malaise. Old Dominion said revenue per hundredweight, or yield, was up 3.2% y/y for the first two months of the second quarter (5.6% higher excluding fuel surcharges). The dip in average shipment weight modestly benefited the metric. Retail diesel fuel prices were off 8.5% y/y in May following an 11% decline in April. A sliding fuel surcharge scale makes higher diesel prices incrementally more accretive to LTL carrier margins but presents a headwind when fuel prices are falling. '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,' Old Dominion President and CEO Marty Freeman said in a Wednesday news release. 'Customers have continued to value our industry-leading service, which supports our ongoing yield management initiatives.' The company previously guided to second-quarter revenue of approximately $1.4 billion (a 7% y/y decline, or a 5% decline on a per-day basis) assuming April's volume and yield trends held throughout the quarter. That outlook included a 5% to 5.5% increase in yield (excluding fuel), which is in line with the actual result seen during the two months. A second-quarter operating ratio forecast calls for only 100 basis points of sequential improvement from the first quarter versus the normal change rate of 300 to 350 bps of improvement. That guide implies a 74.4% OR, which would be 250 bps worse y/y. The company normally sees an 8% step up in revenue sequentially in the second quarter but is only seeing a 3% increase so far this year. 'While the macroeconomic environment remains uncertain, we will continue to focus on executing on our long-term strategic plan,' Freeman added. '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.' Shares of ODFL were off 1.1% in early trading on Wednesday compared to the S&P 500, which was up 0.3%. More FreightWaves articles by Todd Maiden: Transportation pricing grows faster than capacity again in May Yellow Corp. to sell 4 terminals for $6.8M Proxy adviser backs activist's move to reshape Forward Air board The post Old Dominion's May update in line with prior Q2 guide appeared first on FreightWaves.
Associated Press
3 days ago
- Business
- Associated Press
Old Dominion Freight Line Provides Update for Second Quarter 2025
THOMASVILLE, N.C.--(BUSINESS WIRE)--Jun 4, 2025-- Old Dominion Freight Line, Inc. (Nasdaq: ODFL) today reported certain less-than-truckload ('LTL') operating metrics for May 2025. Revenue per day decreased 5.8% as compared to May 2024 due to an 8.4% decrease in LTL tons per day that was partially offset by an increase in LTL revenue per hundredweight. The decrease in LTL tons per day was attributable to a 6.8% decrease in LTL shipments per day and a 1.9% decrease in LTL weight per shipment. For the quarter-to-date period, LTL revenue per hundredweight and LTL revenue per hundredweight, excluding fuel surcharges, increased 3.2% and 5.6%, respectively, as compared to the same period last year. Marty Freeman, President and Chief Executive Officer of Old Dominion, commented, '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.' Forward-looking statements in this news release are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. We caution the reader that such forward-looking statements involve risks and uncertainties that could cause actual events and results to be materially different from those expressed or implied herein, including, but not limited to, the following: (1) the challenges associated with executing our growth strategy, and developing, marketing and consistently delivering high-quality services that meet customer expectations; (2) changes in our relationships with significant customers; (3) our exposure to claims related to cargo loss and damage, property damage, personal injury, workers' compensation and healthcare, increased self-insured retention or deductible levels or premiums for excess coverage, and claims in excess of insured coverage levels; (4) reductions in the available supply or increases in the cost of equipment and parts; (5) various economic factors such as inflationary pressures or downturns in the domestic economy, and our inability to sufficiently increase our customer rates to offset the increase in our costs; (6) higher costs for or limited availability of suitable real estate; (7) the availability and cost of third-party transportation used to supplement our workforce and equipment needs; (8) fluctuations in the availability and price of diesel fuel and our ability to collect fuel surcharges, as well as the effectiveness of those fuel surcharges in mitigating the impact of fluctuating prices for diesel fuel and other petroleum-based products; (9) seasonal trends in the less-than-truckload ('LTL') industry, harsh weather conditions and disasters; (10) the availability and cost of capital for our significant ongoing cash requirements; (11) decreases in demand for, and the value of, used equipment; (12) our ability to successfully consummate and integrate acquisitions; (13) various risks arising from our international business relationships; (14) the costs and potential adverse impact of compliance with anti-terrorism measures on our business; (15) the competitive environment with respect to our industry, including pricing pressures; (16) our customers' and suppliers' businesses may be impacted by various economic factors such as recessions, inflation, downturns in the economy, global uncertainty and instability, changes in international trade policies, changes in U.S. social, political, and regulatory conditions or a disruption of financial markets; (17) the negative impact of any unionization, or the passage of legislation or regulations that could facilitate unionization, of our employees; (18) increases in the cost of employee compensation and benefit packages used to address general labor market challenges and to attract or retain qualified employees, including drivers and maintenance technicians; (19) our ability to retain our key employees and continue to effectively execute our succession plan; (20) potential costs and liabilities associated with cyber incidents and other risks with respect to our information technology systems or those of our third-party service providers, including system failure, security breach, disruption by malware or ransomware or other damage; (21) the failure to adapt to new technologies implemented by our competitors in the LTL and transportation industry, which could negatively affect our ability to compete; (22) the failure to keep pace with developments in technology, any disruption to our technology infrastructure, or failures of essential services upon which our technology platforms rely, which could cause us to incur costs or result in a loss of business; (23) disruption in the operational and technical services (including software as a service) provided to us by third parties, which could result in operational delays and/or increased costs; (24) the Compliance, Safety, Accountability initiative of the Federal Motor Carrier Safety Administration ('FMCSA'), which could adversely impact our ability to hire qualified drivers, meet our growth projections and maintain our customer relationships; (25) the costs and potential adverse impact of compliance with, or violations of, current and future rules issued by the Department of Transportation, the FMCSA and other regulatory agencies; (26) the costs and potential liabilities related to compliance with, or violations of, existing or future governmental laws and regulations, including environmental laws; (27) the effects of legal, regulatory or market responses to climate change concerns; (28) emissions-control and fuel efficiency regulations that could substantially increase operating expenses; (29) expectations relating to evolving environmental, social and governance considerations and related reporting obligations; (30) the increase in costs associated with healthcare and other mandated benefits; (31) the costs and potential liabilities related to legal proceedings and claims, governmental inquiries, notices and investigations; (32) the impact of changes in tax laws, rates, guidance and interpretations; (33) the concentration of our stock ownership with the Congdon family; (34) the ability or the failure to declare future cash dividends; (35) fluctuations in the amount and frequency of our stock repurchases; (36) volatility in the market value of our common stock; (37) the impact of certain provisions in our articles of incorporation, bylaws, and Virginia law that could discourage, delay or prevent a change in control of us or a change in our management; and (38) other risks and uncertainties described in our most recent Annual Report on Form 10-K and other filings with the SEC. Our forward-looking statements are based upon our beliefs and assumptions using information available at the time the statements are made. We caution the reader not to place undue reliance on our forward-looking statements as (i) these statements are neither a prediction nor a guarantee of future events or circumstances and (ii) the assumptions, beliefs, expectations and projections about future events may differ materially from actual results. We undertake no obligation to publicly update any forward-looking statement to reflect developments occurring after the statement is made, except as otherwise required by law. Old Dominion Freight Line, Inc. is one of the largest North American LTL motor carriers and provides regional, inter-regional and national LTL services through a single integrated, union-free organization. Our service offerings, which include expedited transportation, are provided through an expansive network of service centers located throughout the continental United States. The Company also maintains strategic alliances with other carriers to provide LTL services throughout North America. In addition to its core LTL services, the Company offers a range of value-added services including container drayage, truckload brokerage and supply chain consulting. View source version on CONTACT: Adam N. Satterfield Executive Vice President and Chief Financial Officer (336) 822-5721 KEYWORD: NORTH CAROLINA UNITED STATES NORTH AMERICA INDUSTRY KEYWORD: TRUCKING RAIL TRANSPORT LOGISTICS/SUPPLY CHAIN MANAGEMENT SOURCE: Old Dominion Freight Line, Inc. Copyright Business Wire 2025. PUB: 06/04/2025 07:30 AM/DISC: 06/04/2025 07:29 AM
Business Wire
3 days ago
- Business
- Business Wire
Old Dominion Freight Line Provides Update for Second Quarter 2025
THOMASVILLE, N.C.--(BUSINESS WIRE)--Old Dominion Freight Line, Inc. (Nasdaq: ODFL) today reported certain less-than-truckload ('LTL') operating metrics for May 2025. Revenue per day decreased 5.8% as compared to May 2024 due to an 8.4% decrease in LTL tons per day that was partially offset by an increase in LTL revenue per hundredweight. The decrease in LTL tons per day was attributable to a 6.8% decrease in LTL shipments per day and a 1.9% decrease in LTL weight per shipment. For the quarter-to-date period, LTL revenue per hundredweight and LTL revenue per hundredweight, excluding fuel surcharges, increased 3.2% and 5.6%, respectively, as compared to the same period last year. Marty Freeman, President and Chief Executive Officer of Old Dominion, commented, '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.' Forward-looking statements in this news release are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. We caution the reader that such forward-looking statements involve risks and uncertainties that could cause actual events and results to be materially different from those expressed or implied herein, including, but not limited to, the following: (1) the challenges associated with executing our growth strategy, and developing, marketing and consistently delivering high-quality services that meet customer expectations; (2) changes in our relationships with significant customers; (3) our exposure to claims related to cargo loss and damage, property damage, personal injury, workers' compensation and healthcare, increased self-insured retention or deductible levels or premiums for excess coverage, and claims in excess of insured coverage levels; (4) reductions in the available supply or increases in the cost of equipment and parts; (5) various economic factors such as inflationary pressures or downturns in the domestic economy, and our inability to sufficiently increase our customer rates to offset the increase in our costs; (6) higher costs for or limited availability of suitable real estate; (7) the availability and cost of third-party transportation used to supplement our workforce and equipment needs; (8) fluctuations in the availability and price of diesel fuel and our ability to collect fuel surcharges, as well as the effectiveness of those fuel surcharges in mitigating the impact of fluctuating prices for diesel fuel and other petroleum-based products; (9) seasonal trends in the less-than-truckload ('LTL') industry, harsh weather conditions and disasters; (10) the availability and cost of capital for our significant ongoing cash requirements; (11) decreases in demand for, and the value of, used equipment; (12) our ability to successfully consummate and integrate acquisitions; (13) various risks arising from our international business relationships; (14) the costs and potential adverse impact of compliance with anti-terrorism measures on our business; (15) the competitive environment with respect to our industry, including pricing pressures; (16) our customers' and suppliers' businesses may be impacted by various economic factors such as recessions, inflation, downturns in the economy, global uncertainty and instability, changes in international trade policies, changes in U.S. social, political, and regulatory conditions or a disruption of financial markets; (17) the negative impact of any unionization, or the passage of legislation or regulations that could facilitate unionization, of our employees; (18) increases in the cost of employee compensation and benefit packages used to address general labor market challenges and to attract or retain qualified employees, including drivers and maintenance technicians; (19) our ability to retain our key employees and continue to effectively execute our succession plan; (20) potential costs and liabilities associated with cyber incidents and other risks with respect to our information technology systems or those of our third-party service providers, including system failure, security breach, disruption by malware or ransomware or other damage; (21) the failure to adapt to new technologies implemented by our competitors in the LTL and transportation industry, which could negatively affect our ability to compete; (22) the failure to keep pace with developments in technology, any disruption to our technology infrastructure, or failures of essential services upon which our technology platforms rely, which could cause us to incur costs or result in a loss of business; (23) disruption in the operational and technical services (including software as a service) provided to us by third parties, which could result in operational delays and/or increased costs; (24) the Compliance, Safety, Accountability initiative of the Federal Motor Carrier Safety Administration ('FMCSA'), which could adversely impact our ability to hire qualified drivers, meet our growth projections and maintain our customer relationships; (25) the costs and potential adverse impact of compliance with, or violations of, current and future rules issued by the Department of Transportation, the FMCSA and other regulatory agencies; (26) the costs and potential liabilities related to compliance with, or violations of, existing or future governmental laws and regulations, including environmental laws; (27) the effects of legal, regulatory or market responses to climate change concerns; (28) emissions-control and fuel efficiency regulations that could substantially increase operating expenses; (29) expectations relating to evolving environmental, social and governance considerations and related reporting obligations; (30) the increase in costs associated with healthcare and other mandated benefits; (31) the costs and potential liabilities related to legal proceedings and claims, governmental inquiries, notices and investigations; (32) the impact of changes in tax laws, rates, guidance and interpretations; (33) the concentration of our stock ownership with the Congdon family; (34) the ability or the failure to declare future cash dividends; (35) fluctuations in the amount and frequency of our stock repurchases; (36) volatility in the market value of our common stock; (37) the impact of certain provisions in our articles of incorporation, bylaws, and Virginia law that could discourage, delay or prevent a change in control of us or a change in our management; and (38) other risks and uncertainties described in our most recent Annual Report on Form 10-K and other filings with the SEC. Our forward-looking statements are based upon our beliefs and assumptions using information available at the time the statements are made. We caution the reader not to place undue reliance on our forward-looking statements as (i) these statements are neither a prediction nor a guarantee of future events or circumstances and (ii) the assumptions, beliefs, expectations and projections about future events may differ materially from actual results. We undertake no obligation to publicly update any forward-looking statement to reflect developments occurring after the statement is made, except as otherwise required by law. Old Dominion Freight Line, Inc. is one of the largest North American LTL motor carriers and provides regional, inter-regional and national LTL services through a single integrated, union-free organization. Our service offerings, which include expedited transportation, are provided through an expansive network of service centers located throughout the continental United States. The Company also maintains strategic alliances with other carriers to provide LTL services throughout North America. In addition to its core LTL services, the Company offers a range of value-added services including container drayage, truckload brokerage and supply chain consulting.
