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Old Dominion (ODFL) Q1 Earnings & Revenues Miss, Fall Y/Y

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Old Dominion Freight Line (ODFL - Free Report) reported disappointing first-quarter 2023 results wherein both earnings and revenues missed the Zacks Consensus Estimate. Results were hurt by softness pertaining to the domestic economy, which resulted in a challenging operating environment.

Quarterly earnings per share of $2.58 fell short of the Zacks Consensus Estimate of $2.69 and declined 0.8% year over year. Revenues of $1,442.1 million lagged the Zacks Consensus Estimate of $1,488.5 million and decreased 3.7% year over year. The downside was due to lackluster less-than-truckload (LTL) revenues.

The LTL services unit logged a total of $1,424.37 million, down 3.5% year over year. Revenues from other services fell 17.4% to $17.76 million.

In the quarter under review, LTL weight per shipment fell 2.5%, while LTL revenue per shipment rose 6.5%. LTL shipments and LTL shipments per day were down 9.6% each, year over year. LTL revenue per hundredweight increased 9.2%.

Total operating expenses inched down 2.9% to $1.06 billion. Operating income declined 5.4% to $383.04 million.

Old Dominion exited the March quarter with cash and cash equivalents worth $207.6 million compared with $186.3 million at the end of 2022. Long-term debt of $79.96 million remained flat sequentially. During the first quarter, Old Dominion paid out dividends worth $44.1 million and repurchased shares worth $141.7 million.

ODFL generated $415.4 million of net cash from operating activities in the reported quarter. Capital expenditures incurred in the reported quarter were $234.7 million.

For 2023, ODFL anticipates its aggregate capital expenditures to be approximately $700 million. Of the total, $260 million is anticipated to be invested in real estate and service center expansion projects, $365 million in tractors and trailers, and $75 million in information technology and other assets.

Currently, Old Dominion carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Q1 Performances of Other Transportation Companies

J.B. Hunt Transport Services’ (JBHT - Free Report) first-quarter 2023 earnings of $1.89 per share missed the Zacks Consensus Estimate of $2.04 and declined 17.5% year over year.

JBHT’s total operating revenues of $3,229.58 million also lagged the Zacks Consensus Estimate of $3,434.4 million and fell 7.4% year over year. The downfall was due to declines in the volume of 25% in Integrated Capacity Solutions (ICS), 5% in Intermodal (JBI) and 17% in Final Mile Services (FMS), respectively. A decline of 17% in revenue per load in Truckload (JBT) also added to the woes.

Revenue declines in ICS, JBI, FMS and JBT were partially offset by Dedicated Contract Services revenue growth of 13%. JBHT’s total operating revenues, excluding fuel surcharges, decreased 10.2% year over year.

Delta Air Lines’ (DAL - Free Report) first-quarter 2023 earnings (excluding 82 cents from non-recurring items) of 25 cents per share missed the Zacks Consensus Estimate of 29 cents. Volatile fuel prices and unfavorable weather conditions led to this downtick. DAL reported a loss of $1.23 per share a year ago, dull in comparison to the current scenario, as air-travel demand was not so buoyant then.

DAL reported revenues of $12,759 million, which missed the Zacks Consensus Estimate of $12,767.4 million. Driven by higher air-travel demand, total revenues increased 36.49% on a year-over-year basis.

Alaska Air Group (ALK - Free Report) reported first-quarter 2023 loss of 62 cents per share, wider than the Zacks Consensus Estimate of a loss of 48 cents. In the year-ago quarter, ALK incurred a loss of $1.33 per share.

ALK’s operating revenues of $2,196 million missed the Zacks Consensus Estimate of $2,202.5 million. The top line jumped 31% year over year, with passenger revenues accounting for 90.3% of the top line and increasing 31% owing to continued recovery in air-travel demand.

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