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Old Dominion (ODFL) Posts LTL Unit Performance for February
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Old Dominion Freight Line, Inc. (ODFL - Free Report) provided an update on the performance of its less-than-truckload (LTL) segment, which is its primary revenue generator, in February.
Old Dominion's revenue per day improved 1.2% year over year in February 2024, owing to an increase in LTL revenue per hundredweight, which was partially offset by a 3% decrease in LTL tons per day. The downfall in LTL tons per day was due to a 3.2% decrease in LTL weight per shipment, which was partially offset by a 0.2% increase in LTL shipments per day.
Quarter to date, Old Dominion’s LTL revenue per hundredweight and LTL revenue per hundredweight, excluding fuel surcharges, jumped 3.7% and 7.1%, year over year, respectively.
Marty Freeman, president and chief executive officer of Old Dominion, stated, "Our revenue results turned slightly positive in February but continue to reflect softness in the domestic economy. Our LTL shipments per day also increased slightly as compared to February 2023 while our yield metrics continued to improve. The increase in our LTL revenue per hundredweight was supported by a favorable pricing environment and our ongoing ability to deliver superior service at a fair price. We believe our value proposition is unmatched in the marketplace, which provides us with a tremendous opportunity to win market share and produce strong profitable growth once the macroeconomic environment begins to improve."
Highlighting its pro-investor stance, ODFL’s management (concurrent with the fourth quarter of 2023 earnings release on Jan 31, 2024) announced a 30% hike to its first-quarter 2024 dividend from the first quarter of 2023 payout. The new dividend of 52 cents per share is payable on Mar 20, 2024, to shareholders of record at the close of business on Mar 6. The dividend hike raises Old Dominion’s annualized cash dividend rate to $2.08 per share from $1.6. In 2023, ODFL paid out dividends worth $175.1 million and repurchased shares worth $453.6 million.
Zacks Rank and Stocks to Consider
Currently, Old Dominion carries a Zacks Rank #4 (Sell).
GATX has an encouraging track record with respect to earnings surprise, having surpassed the Zacks Consensus Estimate in three of the last four quarters (missing the mark in the remaining one). The average beat is 16.47%.
The Zacks Consensus Estimate for 2024 earnings has been revised 6.1% upward over the past 90 days. GATX has an expected earnings growth rate of 3.68% for 2024. Shares of GATX have gained 13.9% in the past year.
SkyWest's fleet-modernization efforts are commendable. The Zacks Consensus Estimate for SKYW’s 2024 earnings has improved 11.1% over the past 90 days. Shares of SKYW have surged 222.2% in the past year.
SKYW has an expected earnings growth rate of more than 100% for 2024. SKYW delivered a trailing four-quarter earnings surprise of 128.02%, on average.
CPA has an encouraging track record with respect to earnings surprise, having surpassed the Zacks Consensus Estimate in three of the last four quarters (missing the mark in the remaining one). The average beat is 18.02%.
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Old Dominion (ODFL) Posts LTL Unit Performance for February
Old Dominion Freight Line, Inc. (ODFL - Free Report) provided an update on the performance of its less-than-truckload (LTL) segment, which is its primary revenue generator, in February.
Old Dominion's revenue per day improved 1.2% year over year in February 2024, owing to an increase in LTL revenue per hundredweight, which was partially offset by a 3% decrease in LTL tons per day. The downfall in LTL tons per day was due to a 3.2% decrease in LTL weight per shipment, which was partially offset by a 0.2% increase in LTL shipments per day.
Quarter to date, Old Dominion’s LTL revenue per hundredweight and LTL revenue per hundredweight, excluding fuel surcharges, jumped 3.7% and 7.1%, year over year, respectively.
Marty Freeman, president and chief executive officer of Old Dominion, stated, "Our revenue results turned slightly positive in February but continue to reflect softness in the domestic economy. Our LTL shipments per day also increased slightly as compared to February 2023 while our yield metrics continued to improve. The increase in our LTL revenue per hundredweight was supported by a favorable pricing environment and our ongoing ability to deliver superior service at a fair price. We believe our value proposition is unmatched in the marketplace, which provides us with a tremendous opportunity to win market share and produce strong profitable growth once the macroeconomic environment begins to improve."
Highlighting its pro-investor stance, ODFL’s management (concurrent with the fourth quarter of 2023 earnings release on Jan 31, 2024) announced a 30% hike to its first-quarter 2024 dividend from the first quarter of 2023 payout. The new dividend of 52 cents per share is payable on Mar 20, 2024, to shareholders of record at the close of business on Mar 6. The dividend hike raises Old Dominion’s annualized cash dividend rate to $2.08 per share from $1.6. In 2023, ODFL paid out dividends worth $175.1 million and repurchased shares worth $453.6 million.
Zacks Rank and Stocks to Consider
Currently, Old Dominion carries a Zacks Rank #4 (Sell).
Some better-ranked stocks from the Zacks Transportation sector are GATX Corporation (GATX - Free Report) , SkyWest, Inc. (SKYW - Free Report) and Copa Holdings, S.A. (CPA - Free Report) . Each stock presently carries a Zacks Rank of 2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
GATX has an encouraging track record with respect to earnings surprise, having surpassed the Zacks Consensus Estimate in three of the last four quarters (missing the mark in the remaining one). The average beat is 16.47%.
The Zacks Consensus Estimate for 2024 earnings has been revised 6.1% upward over the past 90 days. GATX has an expected earnings growth rate of 3.68% for 2024. Shares of GATX have gained 13.9% in the past year.
SkyWest's fleet-modernization efforts are commendable. The Zacks Consensus Estimate for SKYW’s 2024 earnings has improved 11.1% over the past 90 days. Shares of SKYW have surged 222.2% in the past year.
SKYW has an expected earnings growth rate of more than 100% for 2024. SKYW delivered a trailing four-quarter earnings surprise of 128.02%, on average.
CPA has an encouraging track record with respect to earnings surprise, having surpassed the Zacks Consensus Estimate in three of the last four quarters (missing the mark in the remaining one). The average beat is 18.02%.