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Old Dominion (ODFL) Q2 Earnings Beat Estimates, Rise Y/Y
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Old Dominion Freight Line’s (ODFL - Free Report) second-quarter 2024 earnings per share of $1.48 surpassed the Zacks Consensus Estimate of $1.45 and increased 11.3% 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 in the first quarter.
Revenues of $1.5 billion were in line with the Zacks Consensus Estimate but increased 6.1% year over year. An increase in less-than-truckload (“LTL”) revenue per hundredweight and LTL tons per day aided results.
Revenues from LTL services came in at $1.48 billion, up 6.2% year over year. Segmental revenues were in line with our projection. Revenues from other services fell 10.7% to $13.73 million, which was below our projection of $17.8 million.
Old Dominion Freight Line, Inc. Price, Consensus and EPS Surprise
In the quarter under review, LTL weight per shipment dipped by 1.2% and LTL revenue per shipment increased 3.2%. Each of LTL shipments and LTL shipments per day were up 3.1% on a year-over-year basis. LTL revenue per hundredweight increased 4.4%.
Total operating expenses increased 4.9% to $1.07 billion. Operating income increased 7.7% to $421.6 million.
Old Dominion exited the June quarter with cash and cash equivalents of $74.3 million compared with $433.8 million in 2023- end. Long-term debt at the end of the quarter was $40 million compared with $60 million at 2023-end. Capital expenditures incurred in the reported quarter were $238.1 million.
The company paid out dividends worth $112.6 million and repurchased its shares worth $637.1 million in the first half of the year. For 2024, ODFL anticipates total capital expenditures to be $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.
Performances of Some Other Transportation Companies in Q2
Delta Air Lines (DAL - Free Report) has reported second-quarter 2024 earnings (excluding 35 cents from non-recurring items) of $2.36 per share, which marginally missed the Zacks Consensus Estimate of $2.37. Earnings decreased 11.9% on a year-over-year basis. Apart from high costs, the carrier blamed the discounting pressure at the low end of the market, which hurt its pricing power, for the disappointing performance.
Revenues of $16.65 billion surpassed the Zacks Consensus Estimate of $16.25 billion and increased 6.9% year over year, driven by upbeat air travel demand. Adjusted operating revenues (excluding third-party refinery sales) came in at $15.41 billion, up 5.4% year over year.
J.B. Hunt Transport Services (JBHT - Free Report) reported disappointing second-quarter 2024 results wherein both earnings and revenues lagged the Zacks Consensus Estimate.
JBHT’s earnings of $1.32 per share missed the Zacks Consensus Estimate of $1.51 and declined 27% year over year.
JBHT’s total operating revenues of $2.93 billion missed the Zacks Consensus Estimate of $3.03 billion and fell 7% year over year. Total operating revenues, excluding fuel surcharge revenues, fell 6% year over year. The downfall was owing to a 5% decrease in gross revenue per load in Intermodal and a decline in load volume of 25% in Integrated Capacity Solutions (“ICS”), 9% in Truckload, and 9% in Dedicated Contract Services. These were partially offset by the 5% revenue growth of Final Mile Services, primarily driven by new contracts implemented in the past year, and a 5% increase in revenue per load in ICS.
United Airlines (UAL - Free Report) reported second-quarter 2024 earnings per share (excluding 18 cents from non-recurring items) of $4.14, which surpassed the Zacks Consensus Estimate of $3.97. However, earnings decreased 17.7% on a year-over-year basis.
Operating revenues of $14.98 billion missed the Zacks Consensus Estimate of $15.13 billion. The top line increased 5.7% year over year attributed to upbeat air-travel demand. This was driven by a 5.2% rise in passenger revenues (which accounted for 91.2% of the top line) to $13.68 billion. Almost 44,375 passengers traveled on UAL flights in the second quarter, up 5.8% year over year.
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Old Dominion (ODFL) Q2 Earnings Beat Estimates, Rise Y/Y
Old Dominion Freight Line’s (ODFL - Free Report) second-quarter 2024 earnings per share of $1.48 surpassed the Zacks Consensus Estimate of $1.45 and increased 11.3% 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 in the first quarter.
Revenues of $1.5 billion were in line with the Zacks Consensus Estimate but increased 6.1% year over year. An increase in less-than-truckload (“LTL”) revenue per hundredweight and LTL tons per day aided results.
Revenues from LTL services came in at $1.48 billion, up 6.2% year over year. Segmental revenues were in line with our projection. Revenues from other services fell 10.7% to $13.73 million, which was below our projection of $17.8 million.
Old Dominion Freight Line, Inc. Price, Consensus and EPS Surprise
Old Dominion Freight Line, Inc. price-consensus-eps-surprise-chart | Old Dominion Freight Line, Inc. Quote
In the quarter under review, LTL weight per shipment dipped by 1.2% and LTL revenue per shipment increased 3.2%. Each of LTL shipments and LTL shipments per day were up 3.1% on a year-over-year basis. LTL revenue per hundredweight increased 4.4%.
Total operating expenses increased 4.9% to $1.07 billion. Operating income increased 7.7% to $421.6 million.
Old Dominion exited the June quarter with cash and cash equivalents of $74.3 million compared with $433.8 million in 2023- end. Long-term debt at the end of the quarter was $40 million compared with $60 million at 2023-end. Capital expenditures incurred in the reported quarter were $238.1 million.
The company paid out dividends worth $112.6 million and repurchased its shares worth $637.1 million in the first half of the year. For 2024, ODFL anticipates total capital expenditures to be $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.
Zacks Rank
Currently, ODFL carries a Zacks Rank #4 (Sell). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performances of Some Other Transportation Companies in Q2
Delta Air Lines (DAL - Free Report) has reported second-quarter 2024 earnings (excluding 35 cents from non-recurring items) of $2.36 per share, which marginally missed the Zacks Consensus Estimate of $2.37. Earnings decreased 11.9% on a year-over-year basis. Apart from high costs, the carrier blamed the discounting pressure at the low end of the market, which hurt its pricing power, for the disappointing performance.
Revenues of $16.65 billion surpassed the Zacks Consensus Estimate of $16.25 billion and increased 6.9% year over year, driven by upbeat air travel demand. Adjusted operating revenues (excluding third-party refinery sales) came in at $15.41 billion, up 5.4% year over year.
J.B. Hunt Transport Services (JBHT - Free Report) reported disappointing second-quarter 2024 results wherein both earnings and revenues lagged the Zacks Consensus Estimate.
JBHT’s earnings of $1.32 per share missed the Zacks Consensus Estimate of $1.51 and declined 27% year over year.
JBHT’s total operating revenues of $2.93 billion missed the Zacks Consensus Estimate of $3.03 billion and fell 7% year over year. Total operating revenues, excluding fuel surcharge revenues, fell 6% year over year. The downfall was owing to a 5% decrease in gross revenue per load in Intermodal and a decline in load volume of 25% in Integrated Capacity Solutions (“ICS”), 9% in Truckload, and 9% in Dedicated Contract Services. These were partially offset by the 5% revenue growth of Final Mile Services, primarily driven by new contracts implemented in the past year, and a 5% increase in revenue per load in ICS.
United Airlines (UAL - Free Report) reported second-quarter 2024 earnings per share (excluding 18 cents from non-recurring items) of $4.14, which surpassed the Zacks Consensus Estimate of $3.97. However, earnings decreased 17.7% on a year-over-year basis.
Operating revenues of $14.98 billion missed the Zacks Consensus Estimate of $15.13 billion. The top line increased 5.7% year over year attributed to upbeat air-travel demand. This was driven by a 5.2% rise in passenger revenues (which accounted for 91.2% of the top line) to $13.68 billion. Almost 44,375 passengers traveled on UAL flights in the second quarter, up 5.8% year over year.