Old Dominion (ODFL) Posts LTL Unit Performance for August
Old Dominion Freight Line, Inc. (ODFL) provided an update on the performance of its less-than-truckload (LTL) segment, which is its primary revenue generator, in August.
Old Dominion's revenue per day fell 1.4% year over year in August 2023, owing to a 6% decrease in LTL tons per day, partially offset by an increase in LTL revenue per hundredweight. The downfall in LTL tons per day was due to a 1.2% decrease in LTL shipments per day and a 4.8% decrease in LTL weight per shipment.
Quarter to date, Old Dominion’s LTL revenue per hundredweight and LTL revenue per hundredweight, excluding fuel surcharges, jumped 1.8% and 8.8% year over year, respectively.
Marty Freeman, president and chief executive officer of Old Dominion, stated, "The decrease in Old Dominion’s tonnage for August reflects continued softness in the domestic economy as well as a change in the mix of our freight. Through July of this year, our daily shipment count averaged approximately 47,000 shipments per day and that average increased to approximately 50,000 shipments per day in August. This incremental increase is due in part to the direct and indirect impact of one of our largest competitors ceasing operations in July, as we believe underlying demand has remained relatively consistent. Our team responded well to this inflection in our volumes and our service metrics have remained best-in-class. We will continue to focus on providing our customers with superior service at a fair price, as we believe this element of our long-term strategic plan continues to support our ability to win market share."
Zacks Rank and Stocks to Consider
Currently, Old Dominion carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the Zacks Transportation sector are United Airlines (UAL) and SkyWest, Inc. (SKYW). United Airlines presently sports a Zacks Rank #1 (Strong Buy), while SkyWest carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
United Airlines has an expected earnings growth rate of more than 100% for the current year. UAL delivered a trailing four-quarter earnings surprise of 21.44%, on average.
The Zacks Consensus Estimate for UAL’s current-year earnings has improved 18.9% over the past 90 days. Shares of UAL have soared 34.5% year to date.
SkyWest's fleet-modernization efforts are commendable.A fall in operating expenses is a tailwind for SkyWest. In second-quarter 2023, the metric dipped 2.4% to $693.8 million due to a fall in operating costs. Low operating expenses boost bottom-line results. Shares of SKYW have surged 144.6% year to date.
SKYW delivered a trailing four-quarter earnings surprise of 31.51%, on average.
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