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Old Dominion (ODFL) Q3 Earnings Beat, Revenues Miss Estimates
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Old Dominion Freight Line, Inc. (ODFL - Free Report) reported third-quarter 2018 earnings per share (EPS) of $2.12, which surpassed the Zacks Consensus Estimate of $1.97. The bottom line also surged 71% on a year-over-year basis. Results were aided by a lower effective tax rate.
Quarterly revenues of $1,058.2 million missed the consensus mark of $1,059.2 million. However, the top line increased 21.2% on a year-over-year basis. The upside was primarily driven by 8.1% and 12.5% increase in LTL tons and LTL revenue per hundredweight, respectively.
In the quarter under review, LTL revenue per hundredweight was up 9%, excluding fuel surcharges. Also, LTL shipments improved 9.7%. However, LTL weight per shipment declined 1.4% in the third quarter.
Additionally, operating ratio improved 280 basis points (bps) to 78.4%. Effective tax rate in the quarter under review declined to 24.3% from 37.8% in the prior-year quarter. The reduction was primarily caused by the new tax law (Tax Cut and Jobs Act). The company expects effective tax rate to be 25.9% for the final quarter of the year.
Old Dominion Freight Line, Inc. Price, Consensus and EPS Surprise
As of Sep 30, 2018, this Zacks Rank #2 (Buy) company rewarded shareholders to the tune of $108.6 million through dividends ($32 million) and buybacks ($76.6 million). Old Dominion exited the quarter with cash and cash equivalents of $177.5 million. Debt-to-total capitalization ratio at the end of the quarter was 1.7% compared with 4% at the end of 2017. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Capital expenditures in the quarter totaled $177.6 million. For 2018, Old Dominion continues to expect capital expenditures of $555 million. Of the total amount, $200 million is anticipated to be spent on real estate and service center expansion while approximately $300 million and $55 million is estimated to be spent on tractors and trailers, and technology and other assets, respectively.
Upcoming Releases
Investors interested in the broader Transportation sector are awaiting third-quarter 2018 earnings reports from key players like ArcBest Corporation (ARCB - Free Report) , Atlas Air Worldwide Holdings, Inc. and C.H. Robinson Worldwide, Inc. (CHRW - Free Report) . C.H. Robinson will release results on Oct 30. ArcBest Corporation and Atlas Air Worldwide will announce the same on Nov 1.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
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Old Dominion (ODFL) Q3 Earnings Beat, Revenues Miss Estimates
Old Dominion Freight Line, Inc. (ODFL - Free Report) reported third-quarter 2018 earnings per share (EPS) of $2.12, which surpassed the Zacks Consensus Estimate of $1.97. The bottom line also surged 71% on a year-over-year basis. Results were aided by a lower effective tax rate.
Quarterly revenues of $1,058.2 million missed the consensus mark of $1,059.2 million. However, the top line increased 21.2% on a year-over-year basis. The upside was primarily driven by 8.1% and 12.5% increase in LTL tons and LTL revenue per hundredweight, respectively.
In the quarter under review, LTL revenue per hundredweight was up 9%, excluding fuel surcharges. Also, LTL shipments improved 9.7%. However, LTL weight per shipment declined 1.4% in the third quarter.
Additionally, operating ratio improved 280 basis points (bps) to 78.4%. Effective tax rate in the quarter under review declined to 24.3% from 37.8% in the prior-year quarter. The reduction was primarily caused by the new tax law (Tax Cut and Jobs Act). The company expects effective tax rate to be 25.9% for the final quarter of the year.
Old Dominion Freight Line, Inc. Price, Consensus and EPS Surprise
Old Dominion Freight Line, Inc. Price, Consensus and EPS Surprise | Old Dominion Freight Line, Inc. Quote
As of Sep 30, 2018, this Zacks Rank #2 (Buy) company rewarded shareholders to the tune of $108.6 million through dividends ($32 million) and buybacks ($76.6 million). Old Dominion exited the quarter with cash and cash equivalents of $177.5 million. Debt-to-total capitalization ratio at the end of the quarter was 1.7% compared with 4% at the end of 2017. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Capital expenditures in the quarter totaled $177.6 million. For 2018, Old Dominion continues to expect capital expenditures of $555 million. Of the total amount, $200 million is anticipated to be spent on real estate and service center expansion while approximately $300 million and $55 million is estimated to be spent on tractors and trailers, and technology and other assets, respectively.
Upcoming Releases
Investors interested in the broader Transportation sector are awaiting third-quarter 2018 earnings reports from key players like ArcBest Corporation (ARCB - Free Report) , Atlas Air Worldwide Holdings, Inc. and C.H. Robinson Worldwide, Inc. (CHRW - Free Report) . C.H. Robinson will release results on Oct 30. ArcBest Corporation and Atlas Air Worldwide will announce the same on Nov 1.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>