Old Dominion Freight Line (ODFL - Free Report) fourth-quarter 2023 earnings per share of $2.94 surpassed the Zacks Consensus Estimate of $2.86 and increased 0.7% year over year. Revenues of $1.49 billion missed the Zacks Consensus Estimate of $1.5 billion but inched up 0.3% year over year. Stable demand for less-than-truckload or LTL services and successful yield-improvement initiatives aided results.
LTL services unit revenues came in at $1.48 billion, up 0.5% year over year. Segmental revenues were in line with our projection. Revenues from other services fell 21.8% to $14 million, below our projection of $15.5 million. In the quarter under review, LTL weight per shipment dipped 3.5% and LTL revenue per shipment declined 0.6%.
Each of LTL shipments and LTL shipments per day were up 1.5% on a year-over-year basis. LTL revenue per hundredweight increased 3%.
Total operating expenses increased 1.2% to $1.07 billion. Operating income declined 2.1% to $421 million.
Old Dominion exited the fourth quarter with cash and cash equivalents of $433.8 million compared with $206.6 million at prior-quarter end. Long-term debt of $59.97 million remained flat sequentially. Capital expenditures incurred in the reported quarter were $105.9 million.
Old Dominion paid out dividends worth $175.1 million and repurchased shares worth $453.6 million in 2023. For 2024, ODFL anticipates its total capital expenditures to be approximately $750 million. Of the total, $350 million is anticipated to be invested in real estate and service center expansion projects, $325 million in tractors and trailers, and $75 million in information technology and other assets.
Dividend Hike
Highlighting its pro-investor stance, ODFL’s management announced a 30% increase to its first-quarter 2024 dividend over 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, 2024. The dividend hike raises Old Dominion’s annualized cash dividend rate to $2.08 per share from $1.6.
Zacks Rank
Currently, ODFL carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Q4 Performances of Other Transportation Companies
Delta Air Lines’ (DAL - Free Report) fourth-quarter 2023 earnings (excluding $1.88 from non-recurring items) of $1.28 per share comfortably beat the Zacks Consensus Estimate of $1.17. Earnings, however, declined 13.5% on a year-over-year basis due to high labor costs.
Revenues of $14.22 billion surpassed the Zacks Consensus Estimate of $14.07 billion and increased 5.9% on a year-over-year basis driven by strong holiday-air-travel demand. Adjusted operating revenues (excluding third-party refinery sales) came in at $13.66 billion, up 11% year over year.
United Airlines (UAL - Free Report) reported fourth-quarter 2023 earnings per share (excluding 19 cents from non-recurring items) of $2, which outpaced the Zacks Consensus Estimate of $1.61 but declined 18.7% year over year.
Operating revenues of $13.6 billion beat the Zacks Consensus Estimate of $13.5 billion. The top line increased 9.9% year over year due to upbeat air-travel demand. Cargo revenues fell 14.8% year over year to $402 million. Revenues from other sources jumped 10.6% year over year to $803 million.
J.B. Hunt Transport Services (JBHT - Free Report) fourth-quarter 2023 earnings per share of $1.47 missed the Zacks Consensus Estimate of $1.74 and declined 23.4% year over year.
Total operating revenues of $3.3 billion surpassed the Zacks Consensus Estimate of $3.2 billion but fell 9.5% year over year. Total operating revenues, excluding fuel surcharge revenues, decreased approximately 6% year over year.
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Old Dominion Freight Line (ODFL - Free Report) fourth-quarter 2023 earnings per share of $2.94 surpassed the Zacks Consensus Estimate of $2.86 and increased 0.7% year over year. Revenues of $1.49 billion missed the Zacks Consensus Estimate of $1.5 billion but inched up 0.3% year over year. Stable demand for less-than-truckload or LTL services and successful yield-improvement initiatives aided results.
LTL services unit revenues came in at $1.48 billion, up 0.5% year over year. Segmental revenues were in line with our projection. Revenues from other services fell 21.8% to $14 million, below our projection of $15.5 million. In the quarter under review, LTL weight per shipment dipped 3.5% and LTL revenue per shipment declined 0.6%.
Each of LTL shipments and LTL shipments per day were up 1.5% on a year-over-year basis. LTL revenue per hundredweight increased 3%.
Total operating expenses increased 1.2% to $1.07 billion. Operating income declined 2.1% to $421 million.
Old Dominion exited the fourth quarter with cash and cash equivalents of $433.8 million compared with $206.6 million at prior-quarter end. Long-term debt of $59.97 million remained flat sequentially. Capital expenditures incurred in the reported quarter were $105.9 million.
Old Dominion paid out dividends worth $175.1 million and repurchased shares worth $453.6 million in 2023. For 2024, ODFL anticipates its total capital expenditures to be approximately $750 million. Of the total, $350 million is anticipated to be invested in real estate and service center expansion projects, $325 million in tractors and trailers, and $75 million in information technology and other assets.
Dividend Hike
Highlighting its pro-investor stance, ODFL’s management announced a 30% increase to its first-quarter 2024 dividend over 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, 2024. The dividend hike raises Old Dominion’s annualized cash dividend rate to $2.08 per share from $1.6.
Zacks Rank
Currently, ODFL carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Q4 Performances of Other Transportation Companies
Delta Air Lines’ (DAL - Free Report) fourth-quarter 2023 earnings (excluding $1.88 from non-recurring items) of $1.28 per share comfortably beat the Zacks Consensus Estimate of $1.17. Earnings, however, declined 13.5% on a year-over-year basis due to high labor costs.
Revenues of $14.22 billion surpassed the Zacks Consensus Estimate of $14.07 billion and increased 5.9% on a year-over-year basis driven by strong holiday-air-travel demand. Adjusted operating revenues (excluding third-party refinery sales) came in at $13.66 billion, up 11% year over year.
United Airlines (UAL - Free Report) reported fourth-quarter 2023 earnings per share (excluding 19 cents from non-recurring items) of $2, which outpaced the Zacks Consensus Estimate of $1.61 but declined 18.7% year over year.
Operating revenues of $13.6 billion beat the Zacks Consensus Estimate of $13.5 billion. The top line increased 9.9% year over year due to upbeat air-travel demand. Cargo revenues fell 14.8% year over year to $402 million. Revenues from other sources jumped 10.6% year over year to $803 million.
J.B. Hunt Transport Services (JBHT - Free Report) fourth-quarter 2023 earnings per share of $1.47 missed the Zacks Consensus Estimate of $1.74 and declined 23.4% year over year.
Total operating revenues of $3.3 billion surpassed the Zacks Consensus Estimate of $3.2 billion but fell 9.5% year over year. Total operating revenues, excluding fuel surcharge revenues, decreased approximately 6% year over year.
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