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.
What's in the Offing for Old Dominion (ODFL) in Q4 Earnings?
Read MoreHide Full Article
Old Dominion Freight Line (ODFL - Free Report) is scheduled to report fourth-quarter 2020 results on Feb 4, before market open.
The Zacks Consensus Estimate for the company’s fourth-quarter earnings has been revised upward by 2.6% in the last 60 days. Moreover, the company has an impressive earnings history, having outperformed the Zacks Consensus Estimate in three of the last four quarters.
Let’s see how things are shaping up for this earnings season.
Factors to Note
Gradual recovery in the freight environment is anticipated to have aided Old Dominion’s fourth-quarter performance. This is expected to get reflected in LTL revenue per hundredweight. Notably, the Zacks Consensus Estimate for LTL revenue per hundredweight in the fourth quarter suggests a marginal improvement from the year-ago reported number and a 1.1% rise from third-quarter 2020’s reported figure. The anticipated improvement in LTL revenue per hundredweight is likely to reflect in revenues from LTL services, the company’s major revenue-generating segment.
Despite having improved, freight demand is still weak when compared with 2019 levels as coronavirus-led disruptions continue. Consequently, LTL shipments are likely to have been low in the fourth quarter.
However, Old Dominion’s bottom line is expected to have benefited from an anticipated reduction in operating expenses owing to decrease in salaries, wages & benefits expenses, as was the case in the last-reported quarter. The apprehended decline in operating expenses should reflect in the operating ratio (operating expenses as a percentage of revenues). The Zacks Consensus Estimate for operating ratio stands at 77%, indicating an improvement from 81% reported in the fourth quarter of 2019. Notably, lower the value of this key measure of efficiency, 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 -1.64% as the Most Accurate Estimate is pegged at $1.54, lower than the Zacks Consensus Estimate of $1.57. 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 #3.
Highlights of Q3 Earnings
In the last-reported quarter, the company delivered an earnings surprise of 13.2%. Total revenues also surpassed the Zacks Consensus Estimate. While the bottom line surged 24.8% year over year primarily owing to reduction in operating expenses, the top line increased marginally due to 1.3% rise in LTL tons per day.
Stocks to Consider
Investors interested in the broader Transportation sector may consider Air Lease Corporation (AL - Free Report) , Copa Holdings, S.A. (CPA - Free Report) and SkyWest, Inc. (SKYW - Free Report) , as these stocks possess the right combination of elements to beat on earnings this reporting cycle.
Air Lease has an Earnings ESP of +6.11% and a Zacks Rank #3. The company will release fourth-quarter earnings numbers on Feb 22.
Copa Holdings has an Earnings ESP of +14.39% and a Zacks Rank of 3. The company will announce fourth-quarter results on Feb 10.
SkyWest has an Earnings ESP of +18.63% and a Zacks Rank #1. The company is scheduled to release fourth-quarter earnings figures on Feb 4.
Legal Marijuana: An Investor’s Dream
Imagine getting in early on a young industry primed to skyrocket from $17.7 billion in 2019 to an expected $73.6 billion by 2027.
Although marijuana stocks did better as the pandemic took hold than the market as a whole, they’ve been pushed down. This is exactly the right time to get in on selected strong companies at a fraction of their value before COVID struck. Zacks’ Special Report, Marijuana Moneymakers, reveals 10 exciting tickers for urgent consideration.
Image: Shutterstock
What's in the Offing for Old Dominion (ODFL) in Q4 Earnings?
Old Dominion Freight Line (ODFL - Free Report) is scheduled to report fourth-quarter 2020 results on Feb 4, before market open.
The Zacks Consensus Estimate for the company’s fourth-quarter earnings has been revised upward by 2.6% in the last 60 days. Moreover, the company has an impressive earnings history, having outperformed the Zacks Consensus Estimate in three of the last four quarters.
Let’s see how things are shaping up for this earnings season.
Factors to Note
Gradual recovery in the freight environment is anticipated to have aided Old Dominion’s fourth-quarter performance. This is expected to get reflected in LTL revenue per hundredweight. Notably, the Zacks Consensus Estimate for LTL revenue per hundredweight in the fourth quarter suggests a marginal improvement from the year-ago reported number and a 1.1% rise from third-quarter 2020’s reported figure. The anticipated improvement in LTL revenue per hundredweight is likely to reflect in revenues from LTL services, the company’s major revenue-generating segment.
Despite having improved, freight demand is still weak when compared with 2019 levels as coronavirus-led disruptions continue. Consequently, LTL shipments are likely to have been low in the fourth quarter.
However, Old Dominion’s bottom line is expected to have benefited from an anticipated reduction in operating expenses owing to decrease in salaries, wages & benefits expenses, as was the case in the last-reported quarter. The apprehended decline in operating expenses should reflect in the operating ratio (operating expenses as a percentage of revenues). The Zacks Consensus Estimate for operating ratio stands at 77%, indicating an improvement from 81% reported in the fourth quarter of 2019. Notably, lower the value of this key measure of efficiency, 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 -1.64% as the Most Accurate Estimate is pegged at $1.54, lower than the Zacks Consensus Estimate of $1.57. 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 #3.
Highlights of Q3 Earnings
In the last-reported quarter, the company delivered an earnings surprise of 13.2%. Total revenues also surpassed the Zacks Consensus Estimate. While the bottom line surged 24.8% year over year primarily owing to reduction in operating expenses, the top line increased marginally due to 1.3% rise in LTL tons per day.
Stocks to Consider
Investors interested in the broader Transportation sector may consider Air Lease Corporation (AL - Free Report) , Copa Holdings, S.A. (CPA - Free Report) and SkyWest, Inc. (SKYW - Free Report) , as these stocks possess the right combination of elements to beat on earnings this reporting cycle.
Air Lease has an Earnings ESP of +6.11% and a Zacks Rank #3. The company will release fourth-quarter earnings numbers on Feb 22.
Copa Holdings has an Earnings ESP of +14.39% and a Zacks Rank of 3. The company will announce fourth-quarter results on Feb 10.
SkyWest has an Earnings ESP of +18.63% and a Zacks Rank #1. The company is scheduled to release fourth-quarter earnings figures on Feb 4.
Legal Marijuana: An Investor’s Dream
Imagine getting in early on a young industry primed to skyrocket from $17.7 billion in 2019 to an expected $73.6 billion by 2027.
Although marijuana stocks did better as the pandemic took hold than the market as a whole, they’ve been pushed down. This is exactly the right time to get in on selected strong companies at a fraction of their value before COVID struck. Zacks’ Special Report, Marijuana Moneymakers, reveals 10 exciting tickers for urgent consideration.
Download Marijuana Moneymakers FREE >>