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Old Dominion's (ODFL) LTL Segment Numbers Decline in May
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Old Dominion Freight Line, Inc. (ODFL - Free Report) 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 15.7% year over year in May 2023, owing to a 14.4% decrease in LTL tons per day. The downfall in LTL tons per day was due to an 11.4% decrease in LTL shipments per day and a 3.4% decrease in LTL weight per shipment.
Quarter to date, Old Dominion’s LTL revenue per hundredweight and LTL revenue per hundredweight, excluding fuel surcharges, jumped 0.1% and 7.9% year over year, respectively.
Greg C. Gantt, president and chief executive officer of Old Dominion, stated, "Old Dominion’s revenue results for May reflect continued softness in the domestic economy as well as a decrease in fuel surcharge revenue. While our volumes decreased on a year-over-year basis, our LTL shipments per day remained relatively consistent with the first quarter of 2023 and our yield continued to improve.”
He further added, "Our quarter-to-date LTL revenue per hundredweight, excluding fuel surcharges, increased 7.9% due primarily to the ongoing execution of our yield-management strategy. We remain focused on delivering superior service at a fair price to support our consistent, cost-based approach to managing yields, despite the year-over-year decrease in volumes. As we continue to deliver our unmatched value proposition, and consistently execute on the other key elements of our long-term strategic plan, we believe we will win market share and increase shareholder value over the long term."
Zacks Rank and Stocks to Consider
Currently, Old Dominion carries a Zacks Rank #3 (Hold).
Copa Holdings is aided by improved air-travel demand. We are encouraged by the company’s initiatives to modernize its fleet. CPA’s focus on its cargo segment is also impressive.
For second-quarter and full-year 2023, CPA’s earnings are expected to register 765.6% and 75.4% growth, respectively, on a year-over-year basis.
Allegiant also benefits from buoyant air-travel demand. With air-travel demand rising in the United States, operating revenues improved 8.5% year over year in 2022.
Management expects revenues to remain strong in 2023 as well. In first-quarter 2023, operating revenues increased 29.9% on a year-over-year basis. For second-quarter and full-year 2023, ALGT’s earnings are estimated to rise 364.5% and 192%, respectively, on a year-over-year basis.
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Old Dominion's (ODFL) LTL Segment Numbers Decline in May
Old Dominion Freight Line, Inc. (ODFL - Free Report) 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 15.7% year over year in May 2023, owing to a 14.4% decrease in LTL tons per day. The downfall in LTL tons per day was due to an 11.4% decrease in LTL shipments per day and a 3.4% decrease in LTL weight per shipment.
Quarter to date, Old Dominion’s LTL revenue per hundredweight and LTL revenue per hundredweight, excluding fuel surcharges, jumped 0.1% and 7.9% year over year, respectively.
Greg C. Gantt, president and chief executive officer of Old Dominion, stated, "Old Dominion’s revenue results for May reflect continued softness in the domestic economy as well as a decrease in fuel surcharge revenue. While our volumes decreased on a year-over-year basis, our LTL shipments per day remained relatively consistent with the first quarter of 2023 and our yield continued to improve.”
He further added, "Our quarter-to-date LTL revenue per hundredweight, excluding fuel surcharges, increased 7.9% due primarily to the ongoing execution of our yield-management strategy. We remain focused on delivering superior service at a fair price to support our consistent, cost-based approach to managing yields, despite the year-over-year decrease in volumes. As we continue to deliver our unmatched value proposition, and consistently execute on the other key elements of our long-term strategic plan, we believe we will win market share and increase shareholder value over the long term."
Zacks Rank and Stocks to Consider
Currently, Old Dominion carries a Zacks Rank #3 (Hold).
Some better-ranked stocks for investors interested in the Zacks Transportation sector are Copa Holdings, S.A. (CPA - Free Report) and Allegiant Travel Company (ALGT - Free Report) . Each of these companies presently sports a Zacks Rank #1(Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Copa Holdings is aided by improved air-travel demand. We are encouraged by the company’s initiatives to modernize its fleet. CPA’s focus on its cargo segment is also impressive.
For second-quarter and full-year 2023, CPA’s earnings are expected to register 765.6% and 75.4% growth, respectively, on a year-over-year basis.
Allegiant also benefits from buoyant air-travel demand. With air-travel demand rising in the United States, operating revenues improved 8.5% year over year in 2022.
Management expects revenues to remain strong in 2023 as well. In first-quarter 2023, operating revenues increased 29.9% on a year-over-year basis. For second-quarter and full-year 2023, ALGT’s earnings are estimated to rise 364.5% and 192%, respectively, on a year-over-year basis.