We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Old Dominion (ODFL) Down 0.2% Since Last Earnings Report: Can It Rebound?
Read MoreHide Full Article
A month has gone by since the last earnings report for Old Dominion Freight Line (ODFL - Free Report) . Shares have lost about 0.2% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Old Dominion due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Earnings Beat at Old Dominion in Q4
Old Dominion Freight Line reported fourth-quarter 2018 earnings of $1.95 per share, which surpassed the Zacks Consensus Estimate of $1.74. Meanwhile, quarterly revenues of $1,026.9 million exceeded the consensus mark of $1,018.2 million and increased 15.2% on a year-over-year basis. Top-line growth was primarily driven by a 2.9% and 12.9% increase in LTL tons and LTL revenue per hundredweight, respectively.
In the quarter under review, LTL revenue per hundredweight was up 10.8%, excluding fuel surcharges. Also, LTL shipments improved 9.2%. However, LTL weight per shipment declined 3.3%.
Old Dominion exited the fourth quarter with cash and cash equivalents of $190.3 million. Debt-to-total capitalization ratio at the end of the quarter was 1.7% compared with 4% at the end of 2017.
Capital expenditures in the quarter totaled $118.4 million. For 2018, the metric came in at $588.3 million. The company expects capital expenditures to be $490 million in 2019. Of the total amount, $220 million is anticipated to be spent on real estate and service center expansion while approximately $175 million and $95 million is estimated to be spent on tractors and trailers, and technology and other assets, respectively.
During the quarter, the company rewarded $97.2 million to shareholders through dividends and buybacks.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in fresh estimates.
VGM Scores
At this time, Old Dominion has a great Growth Score of A, a grade with the same score on the momentum front. However, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Old Dominion has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Old Dominion (ODFL) Down 0.2% Since Last Earnings Report: Can It Rebound?
A month has gone by since the last earnings report for Old Dominion Freight Line (ODFL - Free Report) . Shares have lost about 0.2% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Old Dominion due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Earnings Beat at Old Dominion in Q4
Old Dominion Freight Line reported fourth-quarter 2018 earnings of $1.95 per share, which surpassed the Zacks Consensus Estimate of $1.74. Meanwhile, quarterly revenues of $1,026.9 million exceeded the consensus mark of $1,018.2 million and increased 15.2% on a year-over-year basis. Top-line growth was primarily driven by a 2.9% and 12.9% increase in LTL tons and LTL revenue per hundredweight, respectively.
In the quarter under review, LTL revenue per hundredweight was up 10.8%, excluding fuel surcharges. Also, LTL shipments improved 9.2%. However, LTL weight per shipment declined 3.3%.
Old Dominion exited the fourth quarter with cash and cash equivalents of $190.3 million. Debt-to-total capitalization ratio at the end of the quarter was 1.7% compared with 4% at the end of 2017.
Capital expenditures in the quarter totaled $118.4 million. For 2018, the metric came in at $588.3 million. The company expects capital expenditures to be $490 million in 2019. Of the total amount, $220 million is anticipated to be spent on real estate and service center expansion while approximately $175 million and $95 million is estimated to be spent on tractors and trailers, and technology and other assets, respectively.
During the quarter, the company rewarded $97.2 million to shareholders through dividends and buybacks.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in fresh estimates.
VGM Scores
At this time, Old Dominion has a great Growth Score of A, a grade with the same score on the momentum front. However, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Old Dominion has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.