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Why Is Old Dominion (ODFL) Down 2.3% 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 2.3% 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 Q2
Old Dominion Freight Line’s 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 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.
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.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended downward during the past month.
The consensus estimate has shifted -7.02% due to these changes.
VGM Scores
Currently, Old Dominion has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. Following the exact same course, the stock was allocated a grade of F on the value side, putting it in the lowest quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of F. 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. It's no surprise Old Dominion has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.
Performance of an Industry Player
Old Dominion belongs to the Zacks Transportation - Truck industry. Another stock from the same industry, JB Hunt (JBHT - Free Report) , has gained 1.5% over the past month. More than a month has passed since the company reported results for the quarter ended June 2024.
JB Hunt reported revenues of $2.93 billion in the last reported quarter, representing a year-over-year change of -6.5%. EPS of $1.32 for the same period compares with $1.81 a year ago.
JB Hunt is expected to post earnings of $1.47 per share for the current quarter, representing a year-over-year change of -18.3%. Over the last 30 days, the Zacks Consensus Estimate has changed -1.7%.
JB Hunt has a Zacks Rank #5 (Strong Sell) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of C.
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Why Is Old Dominion (ODFL) Down 2.3% 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 2.3% 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 Q2
Old Dominion Freight Line’s 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 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.
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.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended downward during the past month.
The consensus estimate has shifted -7.02% due to these changes.
VGM Scores
Currently, Old Dominion has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. Following the exact same course, the stock was allocated a grade of F on the value side, putting it in the lowest quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of F. 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. It's no surprise Old Dominion has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.
Performance of an Industry Player
Old Dominion belongs to the Zacks Transportation - Truck industry. Another stock from the same industry, JB Hunt (JBHT - Free Report) , has gained 1.5% over the past month. More than a month has passed since the company reported results for the quarter ended June 2024.
JB Hunt reported revenues of $2.93 billion in the last reported quarter, representing a year-over-year change of -6.5%. EPS of $1.32 for the same period compares with $1.81 a year ago.
JB Hunt is expected to post earnings of $1.47 per share for the current quarter, representing a year-over-year change of -18.3%. Over the last 30 days, the Zacks Consensus Estimate has changed -1.7%.
JB Hunt has a Zacks Rank #5 (Strong Sell) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of C.