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Old Dominion (ODFL) Down 0.8% Since Last Earnings Report: Can It Rebound?
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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 0.8% in that time frame, outperforming 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
Quarterly earnings per share of $2.65 surpassed the Zacks Consensus Estimate of $2.63 but declined 19.7% year over year. Results were hurt by softness pertaining to the domestic economy, which resulted in a challenging operating environment.
Revenues of $1,413.2 million lagged the Zacks Consensus Estimate of $1,445.6 million and decreased 15.2% year over year. The downside was due to lackluster LTL revenues.
The LTL services unit logged a total of $1,397.81 million, down 15% year over year. Revenues from other services fell 32.5% to $15.37 million.
In the quarter under review, LTL weight per shipment dipped 2.9%, while LTL revenue per shipment declined 4%. LTL shipments and LTL shipments per day were down 11.5% each, year over year. LTL revenue per hundredweight decreased 1.1%.
Total operating expenses tumbled 11.8% to $1.02 billion. Operating income declined 23% to $391.59 million .
Old Dominion exited the June quarter with cash and cash equivalents worth $55.14 million compared with $186.3 million at the end of 2022. Long-term debt was $59.97 million compared with $79.96 million at 2022 end. Capital expenditures incurred in the reported quarter were $244.7 million.
Old Dominion paid out dividends worth $87.8 million and repurchased shares worth $302.2 million in the first half of 2023. For 2023, ODFL still anticipates its aggregate capital expenditures to be approximately $700 million. Of the total, $260 million is anticipated to be invested in real estate and service center expansion projects, $365 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 revision have trended downward during the past month.
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 bottom 20% 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. 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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Old Dominion (ODFL) Down 0.8% Since Last Earnings Report: Can It Rebound?
A month has gone by since the last earnings report for Old Dominion Freight Line (ODFL - Free Report) . Shares have lost about 0.8% in that time frame, outperforming 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
Quarterly earnings per share of $2.65 surpassed the Zacks Consensus Estimate of $2.63 but declined 19.7% year over year. Results were hurt by softness pertaining to the domestic economy, which resulted in a challenging operating environment.
Revenues of $1,413.2 million lagged the Zacks Consensus Estimate of $1,445.6 million and decreased 15.2% year over year. The downside was due to lackluster LTL revenues.
The LTL services unit logged a total of $1,397.81 million, down 15% year over year. Revenues from other services fell 32.5% to $15.37 million.
In the quarter under review, LTL weight per shipment dipped 2.9%, while LTL revenue per shipment declined 4%. LTL shipments and LTL shipments per day were down 11.5% each, year over year. LTL revenue per hundredweight decreased 1.1%.
Total operating expenses tumbled 11.8% to $1.02 billion. Operating income declined 23% to $391.59 million .
Old Dominion exited the June quarter with cash and cash equivalents worth $55.14 million compared with $186.3 million at the end of 2022. Long-term debt was $59.97 million compared with $79.96 million at 2022 end. Capital expenditures incurred in the reported quarter were $244.7 million.
Old Dominion paid out dividends worth $87.8 million and repurchased shares worth $302.2 million in the first half of 2023. For 2023, ODFL still anticipates its aggregate capital expenditures to be approximately $700 million. Of the total, $260 million is anticipated to be invested in real estate and service center expansion projects, $365 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 revision have trended downward during the past month.
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 bottom 20% 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. Notably, Old Dominion has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.