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Old Dominion (ODFL) Q2 Earnings Beat, Revenues Miss, Fall Y/Y
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Old Dominion Freight Line (ODFL - Free Report) reported mixed second-quarter 2023 results, with better-than-expected earnings per share but lower-than-expected revenues. Quarterly earnings per share of $2.65 surpassed the Zacks Consensus Estimate of $2.63 but declined 19.7% year over year. Results were hurt by softness pertaining to the domestic economy, which resulted in a challenging operating environment.
Revenues of $1,413.2 million lagged the Zacks Consensus Estimate of $1,445.6 million and decreased 15.2% year over year. The downside was due to lackluster less-than-truckload (LTL) revenues.
The LTL services unit logged a total of $1,397.81 million, down 15% year over year. Revenues from the segment were also below our estimate of $1,428.9 million. Revenues from other services fell 32.5% to $15.37 million and fell short of our projection of $18.4 million.
In the quarter under review, LTL weight per shipment dipped 2.9%, while LTL revenue per shipment declined 4%. LTL shipments and LTL shipments per day were down 11.5% each, year over year. LTL revenue per hundredweight decreased 1.1%.
Total operating expenses tumbled 11.8% to $1.02 billion and lagged our estimate of $1.06 billion. Operating income declined 23% to $391.59 million and topped our projection of $383.7 million.
Old Dominion exited the June quarter with cash and cash equivalents worth $55.14 million compared with $186.3 million at the end of 2022. Long-term debt was $59.97 million compared with $79.96 million at 2022 end. Capital expenditures incurred in the reported quarter were $244.7 million.
Old Dominion paid out dividends worth $87.8 million and repurchased shares worth $302.2 million in the first half of 2023.
In a shareholder-friendly move, ODFL’s board approved a new share repurchase program that authorizes the company to buy back up to $3 billion of its outstanding stock. This new repurchase program will begin after the completion of the existing $2 billion repurchase program, under which $376.9 million remains available and uncommitted as of Jun 30.
For 2023, ODFL still 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.
J.B. Hunt Transport Services’ (JBHT - Free Report) second-quarter 2023 earnings of $1.81 per share missed the Zacks Consensus Estimate of $1.97 and declined 25.2% year over year.
Total operating revenues of $3,132.6 million also lagged the Zacks Consensus Estimate of $3,347.5 million. The top line fell 18.4% year over year.
The downfall was due to a decline in revenue per load of 24% in Integrated Capacity Solutions, 13% in Intermodal and 21% in Truckload. A 4% decrease in productivity in Dedicated Capacity Solutions added to the woes. Changes in customer rate, freight mix and lower fuel surcharge revenues resulted in this downtick.
Delta Air Lines’ (DAL - Free Report) second-quarter 2023 earnings (excluding 16 cents from non-recurring items) of $2.68 per share comfortably beat the Zacks Consensus Estimate of $2.42. DAL reported earnings of $1.44 a year ago.
Revenues of $15,578 million beat the Zacks Consensus Estimate of $14,991.6 million. Total revenues increased 12.69% on a year-over-year basis driven by higher air-travel demand. The adjusted operating margin was 17.1% compared with 11.7% in the prior-year period.
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Old Dominion (ODFL) Q2 Earnings Beat, Revenues Miss, Fall Y/Y
Old Dominion Freight Line (ODFL - Free Report) reported mixed second-quarter 2023 results, with better-than-expected earnings per share but lower-than-expected revenues. Quarterly earnings per share of $2.65 surpassed the Zacks Consensus Estimate of $2.63 but declined 19.7% year over year. Results were hurt by softness pertaining to the domestic economy, which resulted in a challenging operating environment.
Revenues of $1,413.2 million lagged the Zacks Consensus Estimate of $1,445.6 million and decreased 15.2% year over year. The downside was due to lackluster less-than-truckload (LTL) revenues.
The LTL services unit logged a total of $1,397.81 million, down 15% year over year. Revenues from the segment were also below our estimate of $1,428.9 million. Revenues from other services fell 32.5% to $15.37 million and fell short of our projection of $18.4 million.
In the quarter under review, LTL weight per shipment dipped 2.9%, while LTL revenue per shipment declined 4%. LTL shipments and LTL shipments per day were down 11.5% each, year over year. LTL revenue per hundredweight decreased 1.1%.
Total operating expenses tumbled 11.8% to $1.02 billion and lagged our estimate of $1.06 billion. Operating income declined 23% to $391.59 million and topped our projection of $383.7 million.
Old Dominion exited the June quarter with cash and cash equivalents worth $55.14 million compared with $186.3 million at the end of 2022. Long-term debt was $59.97 million compared with $79.96 million at 2022 end. Capital expenditures incurred in the reported quarter were $244.7 million.
Old Dominion paid out dividends worth $87.8 million and repurchased shares worth $302.2 million in the first half of 2023.
In a shareholder-friendly move, ODFL’s board approved a new share repurchase program that authorizes the company to buy back up to $3 billion of its outstanding stock. This new repurchase program will begin after the completion of the existing $2 billion repurchase program, under which $376.9 million remains available and uncommitted as of Jun 30.
For 2023, ODFL still 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.
Q2 Performance of Other Transportation Companies
J.B. Hunt Transport Services’ (JBHT - Free Report) second-quarter 2023 earnings of $1.81 per share missed the Zacks Consensus Estimate of $1.97 and declined 25.2% year over year.
Total operating revenues of $3,132.6 million also lagged the Zacks Consensus Estimate of $3,347.5 million. The top line fell 18.4% year over year.
The downfall was due to a decline in revenue per load of 24% in Integrated Capacity Solutions, 13% in Intermodal and 21% in Truckload. A 4% decrease in productivity in Dedicated Capacity Solutions added to the woes. Changes in customer rate, freight mix and lower fuel surcharge revenues resulted in this downtick.
Delta Air Lines’ (DAL - Free Report) second-quarter 2023 earnings (excluding 16 cents from non-recurring items) of $2.68 per share comfortably beat the Zacks Consensus Estimate of $2.42. DAL reported earnings of $1.44 a year ago.
Revenues of $15,578 million beat the Zacks Consensus Estimate of $14,991.6 million. Total revenues increased 12.69% on a year-over-year basis driven by higher air-travel demand. The adjusted operating margin was 17.1% compared with 11.7% in the prior-year period.