HomeMost PopularInvestingOld Dominion (ODFL) Q3 Earnings & Revenues Exceed Expectations

Old Dominion (ODFL) Q3 Earnings & Revenues Exceed Expectations

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Old Dominion Freight Line, Inc. (ODFL) reported third-quarter 2023 earnings per share of $3.09, surpassing the Zacks Consensus Estimate of $2.89. While this represents an 8% decline compared to the previous year, the company’s revenues of $1,515.27 million beat the Zacks Consensus Estimate of $1,492 million, despite a 5.5% year-over-year decrease.

The decline in revenues can be attributed to a 6.9% decrease in less-than-truckload (LTL) tons per day, but this was partially offset by a 3.1% increase in LTL revenue per hundredweight. The LTL services unit revenues were $1,501.26 million, down 5.2% from the previous year, while revenues from other services fell by 32.4% to $14.01 million.

In terms of specific performance indicators, LTL weight per shipment dipped by 4.1%, while LTL revenue per shipment declined by 1.1%. LTL shipments and LTL shipments per day saw decreases of 4.4% and 2.9% year over year, respectively. On a positive note, LTL revenue per hundredweight increased by 3.1%.

Old Dominion’s total operating expenses fell by 3.4% to $1.07 billion. In turn, operating income declined by 10.3% to $445.02 million.

Old Dominion Freight Line, Inc. Price, Consensus and EPS Surprise

For the third quarter, Old Dominion had cash and cash equivalents worth $206.60 million, up from $55.14 million at the end of the previous quarter. Long-term debt remained flat at $59.97 million. Furthermore, the company incurred capital expenditures of $172 million during the reported quarter.

During the first nine months of 2023, Old Dominion paid out dividends worth $131.5 million and repurchased shares worth $368.1 million. Looking ahead, the company expects its aggregate capital expenditures for 2023 to be around $720 million, with investments in real estate and service center expansion projects, tractors and trailers, and information technology and other assets.

It’s worth noting that Old Dominion carries a Zacks Rank #3 (Hold).

Performances of Other Transportation Companies

J.B. Hunt Transport Services, Inc. (JBHT) reported third-quarter 2023 earnings per share of $1.80, falling short of the Zacks Consensus Estimate of $1.85, and Delta Air Lines, Inc. (DAL) reported earnings per share of $2.03, surpassing the Zacks Consensus Estimate of $1.92. Meanwhile, Alaska Air Group, Inc. (ALK) reported earnings per share of $1.83, missing the Zacks Consensus Estimate of $1.88.

While J.B. Hunt’s total operating revenues of $3,163.8 million fell 18% year over year, Delta Air Lines reported revenues of $15,488 million, representing an 11% year-over-year increase. Alaska Air Group’s operating revenues of $2,839 million were up 0.4% year over year.

For more information on these companies and their performances, please refer to the links provided below.

Overall, Old Dominion’s Q3 earnings and revenues exceeded expectations, demonstrating the company’s resilience in a challenging economic environment. Investors and traders interested in the transportation industry should closely monitor Old Dominion and its competitors to assess the sector’s overall performance.

Disclaimer

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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