We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Will Freight Softness Mar Old Dominion's (ODFL) Q3 Earnings?
Read MoreHide Full Article
Old Dominion Freight Line (ODFL - Free Report) is scheduled to report third-quarter 2020 results on Oct 27, before market open.
The Zacks Consensus Estimate for the company’s third-quarter earnings has been revised upward by 11% in the last 60 days. Let’s take a look at the factors that are expected to have influenced the company’s performance.
Soft freight environment amid the coronavirus crisis is likely to have hurt Old Dominion’s performance in the to-be-reported quarter. This weakness is expected to reflect in LTL (Less-Than-Truckload) tonnage per day and LTL revenue per hundredweight. The Zacks Consensus Estimate for LTL tonnage per day indicates a 1.2% dip from the year-ago reported number. The same for LTL revenue per hundredweight suggests a 2.2% decrease from third-quarter 2019’s reported figure. The apprehended softness in LTL tonnage per day and LTL revenue per hundredweight might get reflected in revenues from LTL services, the company’s major revenue generating segment.
However, similar to the previous quarters, the company’s bottom line is anticipated to have benefited from reduction in operating costs owing to decrease in salaries, wages & benefits expenses. The anticipated decline in operating expenses should reflect in the operating ratio (operating expenses as a percentage of revenues). The Zacks Consensus Estimate for operating ratio in the third quarter stands at 78%, indicating an improvement from 79% reported in the third quarter of 2019. Notably, lower the value of the metric, the better.
Old Dominion Freight Line, Inc. Price and EPS Surprise
Our proven model does not conclusively predict an earnings beat for Old Dominion this time around. This is because a stock needs to have a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. However, that is not the case here. You can see the complete list of today’s Zacks #1 Rank stocks here.
Earnings ESP: Old Dominion has an Earnings ESP of -0.91% as the Most Accurate Estimate is pegged at $1.49, lower than the Zacks Consensus Estimate of $1.51. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Old Dominion carries a Zacks Rank #2.
Highlights of Q2 Earnings
In the last-reported quarter, the company delivered an earnings surprise of 21.4%. However, the bottom line contracted 13.2% year over year. Total revenues surpassed the Zacks Consensus Estimate but declined 15.5% year over year due to coronavirus-induced soft freight environment.
Stocks to Consider
Investors interested in the broader Transportation sector may consider C.H. Robinson Worldwide Inc (CHRW - Free Report) , United Parcel Service Inc (UPS - Free Report) and Schneider National Inc (SNDR - Free Report) as these stocks possess the right combination of elements to beat on earnings this reporting cycle.
C.H. Robinson has an Earnings ESP of +1.35% and a Zacks Rank #3. The company will release third-quarter earnings numbers on Oct 27.
UPS has an Earnings ESP of +4.52% and a Zacks Rank #2. The company will announce third-quarter results on Oct 28.
Schneider has an Earnings ESP of +1.82% and a Zacks Rank of 2. The company will release third-quarter earnings on Oct 29.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
Image: Shutterstock
Will Freight Softness Mar Old Dominion's (ODFL) Q3 Earnings?
Old Dominion Freight Line (ODFL - Free Report) is scheduled to report third-quarter 2020 results on Oct 27, before market open.
The Zacks Consensus Estimate for the company’s third-quarter earnings has been revised upward by 11% in the last 60 days. Let’s take a look at the factors that are expected to have influenced the company’s performance.
Soft freight environment amid the coronavirus crisis is likely to have hurt Old Dominion’s performance in the to-be-reported quarter. This weakness is expected to reflect in LTL (Less-Than-Truckload) tonnage per day and LTL revenue per hundredweight. The Zacks Consensus Estimate for LTL tonnage per day indicates a 1.2% dip from the year-ago reported number. The same for LTL revenue per hundredweight suggests a 2.2% decrease from third-quarter 2019’s reported figure. The apprehended softness in LTL tonnage per day and LTL revenue per hundredweight might get reflected in revenues from LTL services, the company’s major revenue generating segment.
However, similar to the previous quarters, the company’s bottom line is anticipated to have benefited from reduction in operating costs owing to decrease in salaries, wages & benefits expenses. The anticipated decline in operating expenses should reflect in the operating ratio (operating expenses as a percentage of revenues). The Zacks Consensus Estimate for operating ratio in the third quarter stands at 78%, indicating an improvement from 79% reported in the third quarter of 2019. Notably, lower the value of the metric, the better.
Old Dominion Freight Line, Inc. Price and EPS Surprise
Old Dominion Freight Line, Inc. price-eps-surprise | Old Dominion Freight Line, Inc. Quote
What Does the Zacks Model Say?
Our proven model does not conclusively predict an earnings beat for Old Dominion this time around. This is because a stock needs to have a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. However, that is not the case here. You can see the complete list of today’s Zacks #1 Rank stocks here.
Earnings ESP: Old Dominion has an Earnings ESP of -0.91% as the Most Accurate Estimate is pegged at $1.49, lower than the Zacks Consensus Estimate of $1.51. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Old Dominion carries a Zacks Rank #2.
Highlights of Q2 Earnings
In the last-reported quarter, the company delivered an earnings surprise of 21.4%. However, the bottom line contracted 13.2% year over year. Total revenues surpassed the Zacks Consensus Estimate but declined 15.5% year over year due to coronavirus-induced soft freight environment.
Stocks to Consider
Investors interested in the broader Transportation sector may consider C.H. Robinson Worldwide Inc (CHRW - Free Report) , United Parcel Service Inc (UPS - Free Report) and Schneider National Inc (SNDR - Free Report) as these stocks possess the right combination of elements to beat on earnings this reporting cycle.
C.H. Robinson has an Earnings ESP of +1.35% and a Zacks Rank #3. The company will release third-quarter earnings numbers on Oct 27.
UPS has an Earnings ESP of +4.52% and a Zacks Rank #2. The company will announce third-quarter results on Oct 28.
Schneider has an Earnings ESP of +1.82% and a Zacks Rank of 2. The company will release third-quarter earnings on Oct 29.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
See 8 breakthrough stocks now>>