Old Dominion (ODFL) Posts Solid November LTL Unit Performance
Old Dominion Freight Line, Inc. ODFL provided an update on the November performance of its less-than-truckload (LTL) segment, which is its primary revenue generator.
With an increase in LTL revenue per hundredweight, which was partially offset by an 8.6% decline in LTL tons per day, ODFL’s revenue per day climbed 7.3% year over year in November 2022. LTL tons per day were hurt by a 7.3% decrease in LTL shipments per day and a 1.4% 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 17.3% and 8.6% year over year, respectively.
Greg C. Gantt, president and chief executive officer of Old Dominion, stated, "Old Dominion’s revenue growth for the first two months of the fourth quarter reflects the ongoing improvement in our yield, which more than offset the decrease in volumes. We believe the year-over-year decrease in volumes is primarily due to continued softness in the domestic economy, as customer demand for our superior service has remained consistently strong. Our ability to provide superior service at a fair price adds value to our customers’ supply chains while also strengthening our customer relationships. We remain focused on this fundamental element of our long-term strategic plan, and we believe the disciplined execution of our plan will continue to support our ability to win market share and increase shareholder value."
Zacks Rank and Stocks to Consider
Currently, Old Dominion carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Some better-ranked stocks from the broader Zacks Transportation sector are Air Transport Services Group ATSG, Ryder Systems R and Teekay Tankers Ltd. (TNK), each currently carrying a Zacks Rank #2 (Buy).
ATSG has an expected earnings growth rate of 34.34% for the current year. ATSG delivered a trailing four-quarter earnings surprise of 17.78%, on average.
The Zacks Consensus Estimate for ATSG’s current-year earnings has improved 5.2% over the past 90 days. Shares of ATSG have declined 1.8% over the past year.
Ryder has an expected earnings growth rate of 67.12% for the current year. R delivered a trailing four-quarter earnings surprise of 30.13%, on average.
The Zacks Consensus Estimate for R’s current-year earnings has improved 6.9% over the past 90 days. Shares of R have gained 4.7% over the past year.
Teekay Tankers has an expected earnings growth rate of 214.91% for the current year. TNK delivered a trailing four-quarter earnings surprise of 42.23%, on average. Teekay Tankers has a long-term expected growth rate of 3%.
The Zacks Consensus Estimate for TNK’s current-year earnings has improved 95% over the past 90 days. Shares of TNK have soared 176.8% over the past year.
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Old Dominion Freight Line, Inc. (ODFL) : Free Stock Analysis Report
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