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Why Is Old Dominion (ODFL) Down 12.8% Since Last Earnings Report?
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A month has gone by since the last earnings report for Old Dominion Freight Line (ODFL - Free Report) . Shares have lost about 12.8% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Old Dominion due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Earnings Beat at Old Dominion in Q1
Old Dominion Freight Line’s first-quarter 2024 earnings per share of $1.34 surpassed the Zacks Consensus Estimate of $1.33 and increased 3.9% year over year. Management has stated that all per-share data, even for the prior-year period, have been adjusted to reflect the two-for-one stock split. The stock split was announced by ODFL during the first quarter.
Revenues of $1.46 billion missed the Zacks Consensus Estimate of $1.47 billion but inched up 1.2% year over year. An increase in less-than-truckload or LTL revenue per hundredweight and yield-improvement initiatives aided results.
Revenues from LTL services came in at $1.45 billion, up 1.6% year over year. Revenues from other services fell 24.9% to $13.34 million.
In the quarter under review, LTL weight per shipment dipped 2.7% and LTL revenue per shipment increased 1.3%. Each of LTL shipments and LTL shipments per day were down 0.5% on a year-over-year basis. LTL revenue per hundredweight increased 4.1%.
Total operating expenses increased 1.3% to $1.07 billion. Operating income inched up 0.9% to $386.4 million.
Old Dominion exited the March quarter with cash and cash equivalents of $581 million compared with $433.8 million at prior-quarter end. Long-term debt of $59.98 million remained flat sequentially. Capital expenditures incurred in the reported quarter were $119.5 million.
Old Dominion paid out dividends worth $56.6 million and repurchased shares worth $85.3 million in the March quarter. For 2024, ODFL anticipates total capital expenditures to be approximately $750 million. Of the total, $350 million is anticipated to be invested in real estate and service center expansion projects, $325 million in tractors and trailers, and $75 million in information technology and other assets.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended downward during the past month.
The consensus estimate has shifted -10.56% due to these changes.
VGM Scores
Currently, Old Dominion has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with a C. However, the stock was allocated a grade of F on the value side, putting it in the fifth quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Old Dominion has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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Why Is Old Dominion (ODFL) Down 12.8% Since Last Earnings Report?
A month has gone by since the last earnings report for Old Dominion Freight Line (ODFL - Free Report) . Shares have lost about 12.8% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Old Dominion due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Earnings Beat at Old Dominion in Q1
Old Dominion Freight Line’s first-quarter 2024 earnings per share of $1.34 surpassed the Zacks Consensus Estimate of $1.33 and increased 3.9% year over year. Management has stated that all per-share data, even for the prior-year period, have been adjusted to reflect the two-for-one stock split. The stock split was announced by ODFL during the first quarter.
Revenues of $1.46 billion missed the Zacks Consensus Estimate of $1.47 billion but inched up 1.2% year over year. An increase in less-than-truckload or LTL revenue per hundredweight and yield-improvement initiatives aided results.
Revenues from LTL services came in at $1.45 billion, up 1.6% year over year. Revenues from other services fell 24.9% to $13.34 million.
In the quarter under review, LTL weight per shipment dipped 2.7% and LTL revenue per shipment increased 1.3%. Each of LTL shipments and LTL shipments per day were down 0.5% on a year-over-year basis. LTL revenue per hundredweight increased 4.1%.
Total operating expenses increased 1.3% to $1.07 billion. Operating income inched up 0.9% to $386.4 million.
Old Dominion exited the March quarter with cash and cash equivalents of $581 million compared with $433.8 million at prior-quarter end. Long-term debt of $59.98 million remained flat sequentially. Capital expenditures incurred in the reported quarter were $119.5 million.
Old Dominion paid out dividends worth $56.6 million and repurchased shares worth $85.3 million in the March quarter. For 2024, ODFL anticipates total capital expenditures to be approximately $750 million. Of the total, $350 million is anticipated to be invested in real estate and service center expansion projects, $325 million in tractors and trailers, and $75 million in information technology and other assets.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended downward during the past month.
The consensus estimate has shifted -10.56% due to these changes.
VGM Scores
Currently, Old Dominion has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with a C. However, the stock was allocated a grade of F on the value side, putting it in the fifth quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Old Dominion has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.