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Old Dominion Down 1.7% on Downbeat Q1 LTL Segment Update

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Old Dominion Freight Line, Inc. (ODFL - Free Report) has issued an update on the performance of the less-than-truckload (LTL) segment (generating major share of revenues) so far in the first quarter of 2019.

Per the company, LTL tons per day dipped 1.5% year over year in February, primarily due to a 3.6% decline in LTL weight per shipment. Reportedly, the performance has been partially supported by 2.1% rise in LTL shipments.
The bearish first-quarter picture has disappointed investors. Consequently, shares of the company have declined 1.7% at the close of business on Mar 5.

Nevertheless, LTL revenue per hundredweight rose 9.6% year over year so far this quarter. Also, the company’s revenue per day improved 7.5% year over year in February on the back of increase in LTL revenue per hundredweight.

 

Old Dominion is benefiting from consistent strength in the LTL segment, which contributes significantly to the top line. Evidently, during the fourth quarter of 2018, the company’s revenues improved 15.2% year over year owing to 2.9% and 12.9% rise in LTL tons and LTL revenue per hundredweight, respectively.

Due to the company’s dependence on the LTL segment, the decline in LTL tons per day does not bode well for the company.

Zacks Rank & Stocks to Consider

Old Dominion currently carries a Zacks Rank #3 (Hold).

Investors interested in the Zacks Transportation Sector may consider Atlas Air Worldwide Holdings, Inc. , Azul S.A. (AZUL - Free Report) and SkyWest, Inc. (SKYW - Free Report) . While Atlas Air Worldwide carries a Zacks Rank #2 (Buy), Azul and SkyWest  sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

All the three stocks boast impressive earnings surprise history. Atlas Air Worldwide outpaced the Zacks Consensus Estimate in each of the trailing four quarters, the average being 27.9%. Azul outpaced the consensus mark in each of the trailing four quarters with an average of 97.9%. SkyWest outpaced the consensus mark in each of the trailing four quarters with an average of 16.9%.

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