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Old Dominion (ODFL) Q3 Earnings & Revenues Miss, Down Y/Y

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Old Dominion Freight Line (ODFL - Free Report) delivered third-quarter 2019 earnings of $2.05 per share, which missed the Zacks Consensus Estimate of $2.11. Moreover, the bottom line fell 3.3% year over year. Quarterly revenues of $1,048.5 million fell short of the consensus mark of $1,059.2 million and inched down nearly 1% year over year. Results were affected by 5.2% decline in LTL (Less-Than-Truckload) tonnage due to soft freight environment. The major revenue generating segment — LTL services — logged a total of $1.04 billion, marginally down year over year.

In the quarter under review, LTL revenue per hundredweight was up 5.8%, excluding fuel surcharges. However, LTL shipments declined 4.5%. Also, LTL weight per shipment fell marginally. Additionally, operating ratio (operating expenses as a percentage of revenues) deteriorated to 79.3% from 78.4% in the year-ago quarter.

Old Dominion, which carries a Zacks Rank #3 (Hold), exited the third quarter with cash and cash equivalents of $322.29 million compared with $190.28 million at the end of 2018. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Old Dominion Freight Line, Inc. Price, Consensus and EPS Surprise

 

Old Dominion Freight Line, Inc. Price, Consensus and EPS Surprise

Old Dominion Freight Line, Inc. price-consensus-eps-surprise-chart | Old Dominion Freight Line, Inc. Quote


Capital expenditures at the end of the first nine months of 2019 totaled $370.3 million. The company continues to expect capital expenditures of $480 million in 2019. Of the total amount, $220 million is anticipated to be invested in real estate and service-center expansion. Approximately $165 million and $95 million are estimated to be spent in tractors and trailers and technology and other assets, respectively.

During the first nine months of 2019, Old Dominion rewarded its shareholders with $246.4 million through $41 million in dividend payouts and $205.3 million in buybacks.

Upcoming Releases

Investors interested in the broader Transportation sector are awaiting third-quarter earnings reports from key players like Expeditors International of Washington, Inc (EXPD - Free Report) , Air Lease Corporation (AL - Free Report) and Hertz Global Holdings, Inc (HTZ - Free Report) . Hertz will release third-quarter results on Nov 4. Expeditors and Air Lease will announce the same on Nov 5 and Nov 7, respectively.

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