Latest news with #OldDominionFreightLine
Bloomberg
01-08-2025
- Business
- Bloomberg
Transport Stocks Face Worst Week Since April on Tariffs, Reports
Transportation stocks are on track for their worst week since President Donald Trump's trade war kicked into high gear in April, after a slew of earnings reports indicated continuing challenges ahead. The Dow Jones Transportation Average — which includes stocks of companies such as truckers, parcel carriers, railroads and airlines — is down more than 7% this week, set for its worst performance since the market panic of early April. All but two of the index's 20 stocks are in the red, and industry heavyweights including United Parcel Service Inc. and Old Dominion Freight Line Inc. are heading for double-digit declines. That's as investors are parsing through new tariffs Trump unveiled this week.
Globe and Mail
01-08-2025
- Business
- Globe and Mail
Old Dominion (ODFL) Q2 EPS Falls 14%
Key Points EPS fell 14.2% year-over-year to $1.27 in the second quarter, missing estimates by $0.01 and declining from $1.48 a year ago. Revenue (GAAP) dropped 6.1% to $1.41 billion, slightly below expectations (GAAP) and down from $1.50 billion in the prior year's second quarter. Operating ratio deteriorated to 74.6%, up from 71.9% last year, indicating higher relative costs. These 10 stocks could mint the next wave of millionaires › Old Dominion Freight Line (NASDAQ:ODFL), a leading U.S. less-than-truckload (LTL) freight carrier, published its second quarter 2025 results on July 30, 2025. The company reported GAAP revenue of $1.41 billion and GAAP earnings per share (EPS) of $1.27, both coming in modestly below analyst estimates of $1.416 billion and $1.28, respectively (GAAP). Compared to the prior-year quarter, GAAP revenue decreased by 6.1% and EPS fell by 14.2% year-over-year in the second quarter. The results signal continued softness in freight demand and higher operating costs, leading to a lower operating margin. Overall, the quarter reflected ongoing headwinds in the freight sector and a challenging near-term operating environment for Old Dominion Freight Line. Metric Q2 2025 Q2 2025 Estimate Q2 2024 Y/Y Change EPS (GAAP) $1.27 $1.28 $1.48 (14.2%) Revenue (GAAP) $1,407.7 million $1,416.4 million $1,498.7 million (6.1%) Operating Income $357.9 million $421.7 million (15.1%) Operating Ratio 74.6% 71.9% +2.7 pp Net Income $268.6 million $322.0 million (16.6%) Source: Analyst estimates for the quarter provided by FactSet. Business Overview and Key Success Factors Old Dominion Freight Line is one of the largest LTL carriers in the United States, providing regional, inter-regional, and national freight transportation. Its core business moves palletized shipments that are too large for standard parcel delivery but don't fill a full truck. The company operates a network of 261 service centers across the country, allowing it to serve diverse customers with high on-time performance and reliability in freight delivery. Recent years have seen the company focus investment on expanding its service center network, deploying new technology to drive efficiencies, and maintaining robust cost controls. Success for Old Dominion depends on service reliability, network scale, cost management, and its ability to adapt to market-demand swings. It invests heavily in infrastructure and IT systems to strengthen its delivery speed and service quality, while closely managing capital spending and overheads to support profitability even during downturns. Quarter in Detail: What Drove This Quarter's Results The company's revenue slipped by 6.1% year-over-year in the second quarter, reflecting a notable decline in shipped freight volumes. Daily LTL tons decreased 9.3%, and shipments per day fell 7.3%. Weight per shipment also declined by 2.1%. Lower shipment volumes pressed down net income and operating profit, a pattern seen across many LTL carriers in 2025. Old Dominion continued to demonstrate pricing discipline in the face of weaker volumes. Its LTL revenue per hundredweight, which measures the average price for moving 100 pounds of freight, rose 3.4% year over year, and the figure excluding fuel surcharges improved by 5.3%. The company managed to achieve these price gains through selective contract renewals and yield management efforts, even as market competition intensified. This approach provided some protection against falling volumes but could not fully offset the drag on overall results. The company's operating ratio, a critical metric in trucking that expresses operating expenses as a percentage of revenue, worsened from 71.9% in Q2 2024 to 74.6%. This shift signals higher costs relative to sales, driven in part by increases in depreciation expenses and employee benefit costs such as group health and dental. Overhead as a percentage of revenue rose by 1.6 percentage points. Despite Old Dominion's traditional cost discipline, cost inflation and lower demand made it more challenging to preserve margin. Net income (GAAP) slid 16.6% compared to the same period last year. Service performance remained a highlight. The company maintained a 99% on-time service rate and a cargo claims ratio of just 0.1%, underscoring its operational reliability. Active full-time equivalent employees fell 4.8% year over year. The company continued to invest in capital expenditures, with $187.2 million spent on facilities, equipment, and technology. The capital expenditure plan totals $450 million for FY2025, with $210 million to real estate and service center expansion, $190 million for new tractors and trailers, and $50 million on IT and other assets. This marks a planned reduction from prior years, allowing the company to match spending more closely to current demand trends. Looking Ahead: Management Outlook and Areas to Watch For the coming quarters and the remainder of fiscal 2025, management did not issue formal financial guidance, citing ongoing uncertainty in the broader economic and industrial environment. Leadership emphasized its commitment to maintaining pricing discipline, investing in operational efficiency, and retaining ample capability to increase volume if demand recovers. The company continues to hold a strong position to benefit from future rebounds in freight activity, given its spare capacity and industry-scale network. Investors and industry observers should monitor trends in LTL shipment volumes, revenue per hundredweight, and the operating ratio. The capital spending plan now stands at $450 million for FY2025, a reduction from earlier expectations as certain projects are deferred. This cautious stance will allow Old Dominion to focus on network efficiency and service quality while maintaining flexibility for growth should the freight market turn upward. The company declared and paid $118.5 million in dividends during the first six months of 2025, reflecting ongoing capital returns. Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted. Where to invest $1,000 right now When our analyst team has a stock tip, it can pay to listen. After all, Stock Advisor's total average return is 1,049%* — a market-crushing outperformance compared to 182% for the S&P 500. They just revealed what they believe are the 10 best stocks for investors to buy right now, available when you join Stock Advisor. See the stocks » *Stock Advisor returns as of July 29, 2025 JesterAI is a Foolish AI, based on a variety of Large Language Models (LLMs) and proprietary Motley Fool systems. All articles published by JesterAI are reviewed by our editorial team, and The Motley Fool takes ultimate responsibility for the content of this article. JesterAI cannot own stocks and so it has no positions in any 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.
Yahoo
31-07-2025
- Business
- Yahoo
Old Dominion (ODFL) Drops on 4th Day as Earnings Disappoint
We recently published . Old Dominion Freight Line, Inc. (NASDAQ:ODFL) is one of the best-performing stocks on Wednesday. Old Dominion dropped for a fourth consecutive day on Wednesday, slashing 9.66 percent to close at $146.46 apiece following a disappointing earnings performance in the second quarter of the year. In its updated report, Old Dominion Freight Line, Inc. (NASDAQ:ODFL) said that net income fell by 16.6 percent to $268.6 million from $322 million in the same period last year. Total revenues dipped by 6.1 percent to $1.4 billion from $1.5 billion year-on-year, due to a 9.3-percent decrease in LTL tons per day, which was partially offset by an increase in LTL revenue per hundredweight. Pixabay/Public Domain In the six-month period, net income dropped by 14.8 percent to $523 million from $614 million, while revenues dipped by 6 percent to $2.78 billion from $2.96 billion. 'Old Dominion's financial results in the second quarter reflect the ongoing softness in the domestic economy. While the challenging macroeconomic backdrop created demand headwinds for our business during the quarter, our market share remained relatively consistent and our team continued to execute on our long-term strategic plan,' said Old Dominion Freight Line, Inc. (NASDAQ:ODFL) President and CEO Marty Freeman. 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 . 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
21-07-2025
- Business
- Yahoo
Ground Transportation Stocks Q1 Teardown: Old Dominion Freight Line (NASDAQ:ODFL) Vs The Rest
As the Q1 earnings season comes to a close, it's time to take stock of this quarter's best and worst performers in the ground transportation industry, including Old Dominion Freight Line (NASDAQ:ODFL) and its peers. The growth of e-commerce and global trade continues to drive demand for shipping services, especially last-mile delivery, presenting opportunities for ground transportation companies. The industry continues to invest in data, analytics, and autonomous fleets to optimize efficiency and find the most cost-effective routes. Despite the essential services this industry provides, ground transportation companies are still at the whim of economic cycles. Consumer spending, for example, can greatly impact the demand for these companies' offerings while fuel costs can influence profit margins. The 16 ground transportation stocks we track reported a slower Q1. As a group, revenues missed analysts' consensus estimates by 2.2%. Luckily, ground transportation stocks have performed well with share prices up 15.4% on average since the latest earnings results. Old Dominion Freight Line (NASDAQ:ODFL) 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. Old Dominion Freight Line reported revenues of $1.37 billion, down 5.8% year on year. This print was in line with analysts' expectations, and overall, it was a strong quarter for the company with a solid beat of analysts' adjusted operating income estimates. Marty Freeman, President and Chief Executive Officer of Old Dominion, commented, 'Old Dominion's financial results for the first quarter reflect the 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. We intend to continue to execute on the core elements of our long-term strategic plan, despite this uncertainty, and our team remains committed to delivering superior service at a fair price to our customers. This focus on delivering value has allowed us to strengthen our customer relationships and win market share over the long term. Interestingly, the stock is up 6.5% since reporting and currently trades at $162.07. Is now the time to buy Old Dominion Freight Line? Access our full analysis of the earnings results here, it's free. Best Q1: Schneider (NYSE:SNDR) Employing thousands of drivers across the country to make deliveries, Schneider (NYSE:SNDR) makes full truckload and intermodal deliveries regionally and across borders. Schneider reported revenues of $1.40 billion, up 6.3% year on year, in line with analysts' expectations. The business had a very strong quarter with a solid beat of analysts' EBITDA estimates. The market seems happy with the results as the stock is up 16.7% since reporting. It currently trades at $25.07. Is now the time to buy Schneider? Access our full analysis of the earnings results here, it's free. Weakest Q1: Heartland Express (NASDAQ:HTLD) Founded by the son of a trucker, Heartland Express (NASDAQ:HTLD) offers full-truckload deliveries across the United States and Mexico. Heartland Express reported revenues of $219.4 million, down 18.8% year on year, falling short of analysts' expectations by 9%. It was a disappointing quarter as it posted a significant miss of analysts' adjusted operating income estimates and a significant miss of analysts' EBITDA estimates. Interestingly, the stock is up 8.4% since the results and currently trades at $8.50. Read our full analysis of Heartland Express's results here. Avis Budget Group (NASDAQ:CAR) The parent company of brands such as Zipcar and Budget Truck Rental, Avis (NASDAQ:CAR) is a provider of car rental and mobility solutions. Avis Budget Group reported revenues of $2.43 billion, down 4.7% year on year. This print lagged analysts' expectations by 2.9%. It was a slower quarter as it also recorded a significant miss of analysts' adjusted operating income estimates. The stock is up 91.9% since reporting and currently trades at $192.58. Read our full, actionable report on Avis Budget Group here, it's free. RXO (NYSE:RXO) With access to millions of trucks, RXO (NYSE:RXO) offers full-truckload, less-than-truckload, and last-mile deliveries. RXO reported revenues of $1.43 billion, up 57% year on year. This number came in 3.5% below analysts' expectations. It was a slower quarter as it also produced a significant miss of analysts' EPS estimates and a miss of analysts' EBITDA estimates. RXO pulled off the fastest revenue growth among its peers. The stock is up 17.7% since reporting and currently trades at $16.17. Read our full, actionable report on RXO here, it's free. Market Update As a result of the Fed's rate hikes in 2022 and 2023, inflation has come down from frothy levels post-pandemic. The general rise in the price of goods and services is trending towards the Fed's 2% goal as of late, which is good news. The higher rates that fought inflation also didn't slow economic activity enough to catalyze a recession. So far, soft landing. This, combined with recent rate cuts (half a percent in September 2024 and a quarter percent in November 2024) have led to strong stock market performance in 2024. The icing on the cake for 2024 returns was Donald Trump's victory in the U.S. Presidential Election in early November, sending major indices to all-time highs in the week following the election. Still, debates around the health of the economy and the impact of potential tariffs and corporate tax cuts remain, leaving much uncertainty around 2025. Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Quality Compounder Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate. StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Business Wire
02-07-2025
- Business
- Business Wire
Old Dominion Freight Line to Webcast Second Quarter 2025 Conference Call
THOMASVILLE, N.C.--(BUSINESS WIRE)--Old Dominion Freight Line, Inc. (Nasdaq: ODFL) announced today that it plans to release its second quarter 2025 financial results before opening of trading on Wednesday, July 30, 2025. The Company will also hold a conference call to discuss its financial results and outlook at 10:00 a.m. (Eastern Time) on Wednesday, July 30, 2025. An online, real-time webcast of Old Dominion's quarterly conference call will be available at on Wednesday, July 30, 2025, at 10:00 a.m. (Eastern Time). The online replay will be available at approximately 1:00 p.m. (Eastern Time) and continue for 30 days. A telephonic replay of the call can be accessed starting at 1:00 p.m. (Eastern Time) and will be available through August 6, 2025, at 1-877-344-7529, access code 8056479. 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.
