Old Dominion Freight Line, Inc. ODFL provided an update on its less-than-truckload (“LTL”) segment’s (major revenue generating unit) performance in November.
With 5.3% decrease in LTL tons per day, revenue per day declined 3.2% year over year. The adversity was partly offset by increase in LTL revenue per hundredweight. The fall in LTL tons per day was due to a 5.7% decrease in LTL shipments per day. Meanwhile, weight per shipment inched up 0.4%. So far in the fourth quarter, LTL revenue per hundredweight augmented 2.6% year over year, while the same excluding fuel surcharges climbed 4.1%.
Per Greg C. Gantt, Old Dominion’s president and CEO, “Our revenue results for November reflect the continued softness in the domestic economy.” Struggling with a sluggish freight environment, as a result of the weak economy, the company’s LTL tonnage declined successively in each of the three quarters of 2019, registering a 4.4% decrease in the first nine months of 2019. LTL shipments also slipped 1.6% in the period.
This leading LTL carrier based in Thomasville, NC, is set to join the coveted S&P 500, before market open on Dec 9, replacing SunTrust Banks , which is expected to be acquired by another S&P 500-member, BB&T Corporation BBT. In the S&P SmallCap 600 Index, Old Dominion’s spot will be filled by Cabot Microelectronics Corporation CCMP. (Read more: Old Dominion to Join Prestigious S&P 500 Benchmark)
Old Dominion carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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