A month has gone by since the last earnings report for Old Dominion Freight Line (ODFL Quick QuoteODFL - Free Report) . Shares have added about 12.8% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is Old Dominion due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.

Earnings Beat at Old Dominion in Q4

Old Dominion's fourth-quarter 2023 earnings per share of $2.94 surpassed the Zacks Consensus Estimate of $2.86 and increased 0.7% year over year. Revenues of $1.49 billion missed the Zacks Consensus Estimate of $1.5 billion but inched up 0.3% year over year. Stable demand for less-than-truckload or LTL services and successful yield-improvement initiatives aided results.

LTL services unit revenues came in at $1.48 billion, up 0.5% year over year. Segmental revenues were in line with our projection. Revenues from other services fell 21.8% to $14 million, below our projection of $15.5 million. In the quarter under review, LTL weight per shipment dipped 3.5% and LTL revenue per shipment declined 0.6%.

Each of LTL shipments and LTL shipments per day were up 1.5% on a year-over-year basis. LTL revenue per hundredweight increased 3%.

Total operating expenses increased 1.2% to $1.07 billion. Operating income declined 2.1% to $421 million.

Old Dominion exited the fourth quarter with cash and cash equivalents of $433.8 million compared with $206.6 million at prior-quarter end. Long-term debt of $59.97 million remained flat sequentially. Capital expenditures incurred in the reported quarter were $105.9 million.

Old Dominion paid out dividends worth $175.1 million and repurchased shares worth $453.6 million in 2023. For 2024, ODFL anticipates its total capital expenditures to be approximately $750 million. Of the total, $350 million is anticipated to be invested in real estate and service center expansion projects, $325 million in tractors and trailers, and $75 million in information technology and other assets.

How Have Estimates Been Moving Since Then?

It turns out, estimates revision have trended downward during the past month.

The consensus estimate has shifted -5.57% due to these changes.

VGM Scores

Currently, Old Dominion has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with an F. Following the exact same course, the stock was allocated a grade of F on the value side, putting it in the fifth quintile for this investment strategy.

Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise Old Dominion has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.

Performance of an Industry Player

Old Dominion belongs to the Zacks Transportation - Truck industry. Another stock from the same industry, JB Hunt (JBHT Quick QuoteJBHT - Free Report) , has gained 2.3% over the past month. More than a month has passed since the company reported results for the quarter ended December 2023.

JB Hunt reported revenues of $3.3 billion in the last reported quarter, representing a year-over-year change of -9.5%. EPS of $1.47 for the same period compares with $1.92 a year ago.

For the current quarter, JB Hunt is expected to post earnings of $1.60 per share, indicating a change of -15.3% from the year-ago quarter. The Zacks Consensus Estimate has changed -0.8% over the last 30 days.

The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for JB Hunt. Also, the stock has a VGM Score of B.