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Old Dominion Gears Up for Q3 Earnings: What's in Store?

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Old Dominion Freight Line (ODFL - Free Report) is scheduled to report third-quarter 2024 results on Oct. 23 before market open.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

ODFL has an encouraging earnings surprise history, having surpassed the Zacks Consensus Estimate in each of the trailing four quarters. The average beat is 3.1%.

The Zacks Consensus Estimate for third-quarter 2024 earnings has been revised 2.7% downward in the past 60 days. The estimate is currently pegged at $1.44 per share. Moreover, the consensus mark implies a 7.1% decrease from the year-ago actuals. The Zacks Consensus Estimate for third-quarter 2024 revenues is currently pegged at $1.5 billion, indicating a 0.6% uptick from the year-ago actuals.

Given this backdrop, let’s examine the factors likely to have influenced Old Dominion’s performance in the to-be-reported quarter.

We anticipate the company’s performance to have been adversely influenced by the freight market downturn as demand for freight services has declined in the quarter to be reported. This has led to low shipment and rates, impacting the company’s top line. Moreover, per our model, we expect revenues from other Services to be $13.7 million, which indicates a 2.5% decline from the third-quarter 2023 actuals.

An increase in operating expenses is also anticipated to have adversely impacted the company’s bottom line in the to-be-reported quarter. Supply-chain disruptions can escalate these expenses, hindering ODFL’s performance in the September quarter.

What Our Model Says

Our proven model does not conclusively predict an earnings beat for Old Domain Freight Line this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here.

ODFL has an Earnings ESP of -1.56% and a Zacks Rank #4 (Sell) at present. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Highlights of 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. 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.

Stocks to Consider

Here are a few stocks from the broader Zacks Transportation sector that investors might want to consider as our model shows that these have the right combination of elements to beat third-quarter 2024 earnings.

JetBlue Airways (JBLU - Free Report) has an Earnings ESP of +18.66% and a Zacks Rank #3. The company is scheduled to report third-quarter 2024 earnings on Oct. 29 before market open.

JBLU surpassed the Zacks Consensus Estimate in three of the preceding four quarters and missed once. The average beat is 42%.

Allegiant Travel Company (ALGT - Free Report) has an Earnings ESP of +8.23% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here. ALGT is scheduled to report second-quarter 2024 earnings on Oct. 30.

ALGT has an encouraging earnings surprise history, having surpassed the Zacks Consensus Estimate in three of the preceding four quarters and missing once, the average beat is 52%.


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