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Old Dominion (ODFL) Lays Out Solid Update on LTL Segment

·2 min read

Old Dominion Freight Line, Inc. ODFL issued an update on the performance of its less-than-truckload (LTL) segment, the major revenue driver, in the month of May.

LTL tons per day increased 28.3% year over year in May owing to 32.6% increase in LTL shipments per day. Consequently, revenues per day rallied 47.6% in the month owing to rise in both LTL tons per day and LTL revenue per hundredweight.  

On a quarter-to-date basis, both LTL revenue per hundredweight and LTL revenue per hundredweight (excluding fuel surcharges) rose 15.3% and 11.1% on a year-over-year basis, respectively. Notably, strong performance in the first two months of second-quarter 2021 can be primarily attributed to increase in demand for Old Dominion’s services and the ongoing improvement from coronavirus in the domestic economy.

We believe that solid LTL performance in the initial two months of second quarter will continue in the third month. This is likely to get reflected in the top line for the June quarter.

Zacks Rank & Other Stocks to Consider

Old Dominion currently carries a Zacks Rank #2 (Buy).

Investors interested in the broader Zacks Transportation sector can also consider stocks like Landstar System, Inc. LSTR, Triton International Limited TRTN and Herc Holdings Inc. HRI. Herc Holdings and Landstar sport a Zacks Rank #1 (Strong Buy), while Triton carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Long-term (three to five years) expected earnings per share growth rate for Landstar, Triton and Herc Holdings is projected at 12%, 10% and 42.9%, respectively.

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Old Dominion Freight Line, Inc. (ODFL) : Free Stock Analysis Report
Landstar System, Inc. (LSTR) : Free Stock Analysis Report
Herc Holdings Inc. (HRI) : Free Stock Analysis Report
Triton International Limited (TRTN) : Free Stock Analysis Report
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