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What's in Store for Old Dominion (ODFL) in Q1 Earnings?

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Old Dominion Freight Line (ODFL - Free Report) is scheduled to report first-quarter 2023 results on Apr 26, before the market open.

The Zacks Consensus Estimate for earnings is currently pegged at $2.68 per share which has been revised 3.1% upward in the past 90 days. The company has a stellar earnings surprise history, having beaten the Zacks Consensus Estimate in each of the preceding four quarters by an average of 8.73%.

Given this backdrop, let’s check out the factors that might have influenced Old Dominion’s performance in the quarter under review.

We expect high operating expenses, due to elevated fuel costs, to have hurt Old Dominion’s bottom line in the to-be-reported quarter.

Moreover, revenues are likely to have decreased due to lower revenues from LTL (less-than-truckload) Services. Per our model, revenues from the unit to have declined 1.5% from first-quarter 2022 actuals. We anticipate LTL revenues per shipment to have declined 11.1% in the March quarter from first-quarter 2022 actuals.

Due to these headwinds, the Zacks Consensus Estimate for ODFL’s first quarter revenues is  pegged at $1.48 billion, at present. In the fourth quarter of 2021, the company reported revenues of $1.5 billion.

What Our Model Says

Our proven model does not conclusively predict an earnings beat for ODFL this time around. The combination of a positive Earnings ESP  and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here. You can uncover the best stocks to buy or sell before they're reported with our  Earnings ESP Filter.

Old Dominion has an Earnings ESP of -0.82% and a Zacks Rank #2.

Highlights of Q4

ODFL's fourth-quarter 2022 earnings per share of $2.92 outpaced the Zacks Consensus Estimate of $2.68 and increased 21.2% year over year. Revenues of $1,491.65 million lagged the Zacks Consensus Estimate of $1,507.7 million but increased 5.8% year over year. The uptick was backed by a 16.7% increase in LTL revenue per hundredweight, partially offset by the decrease in LTL tons.

Stocks to Consider

Here are a few stocks from the broader Zacks Transportation sector that investors may consider, as our model shows that these have the right combination of elements to beat on earnings this season.

Canadian National Railway Company (CNI - Free Report) has an Earnings ESP of +0.18% and a Zacks Rank #3. It will release first-quarter 2023 results on Apr 24.

The stock delivered a trailing four-quarter earnings surprise of 3.5%, on average. The Zacks Consensus Estimate for CNI’s first-quarter 2023 earnings has increased 18.3% from first-quarter 2022 actuals.

Copa Holdings (CPA - Free Report) has an Earnings ESP of +19.57% and sports a Zacks Rank #1. It will release first-quarter 2023 results on May 10. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for CPA’s first-quarter 2023 earnings has improved more than 100% year over year. Upbeat air-travel demand is expected to have buoyed Copa Holdings’ top line in the to-be-reported quarter.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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