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Old Dominion (ODFL) Q2 Earnings Top, Revenues Lag Estimates

Zacks Equity Research

Old Dominion Freight Line ODFL delivered second-quarter 2019 earnings of $2.16 per share, surpassing the Zacks Consensus Estimate of $2.11. Moreover, the bottom line improved 8.5% year over year. Meanwhile, quarterly revenues of $1,060.7 million fell short of the consensus mark of $1,074.5 million but inched up 2.6% on a year-over-year basis. Results were partly affected by 6.3% decline in LTL (Less-Than-Truckload) tonnage due to soft freight environment. However, top-line growth was primarily driven by a 9.5% increase in LTL revenue per hundredweight. The major revenue generating segment — LTL services — logged revenues of $1.05 billion, up 2.8% year over year.

In the quarter under review, LTL revenue per hundredweight was up 10% excluding fuel surcharges. However, LTL shipments dipped 2.6%. Also, LTL weight per shipment slipped 3.8%. Meanwhile, operating ratio (operating expenses as a percentage of revenues) improved to 77.9% from 78.7% in the year- ago quarter on the back of greater efficiencies.

Old Dominion, carrying a Zacks Rank #3 (Hold), exited the second quarter with cash and cash equivalents of $228.96 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 in the quarter totaled $159.2 million. The company continues to expect capital expenditures of $480 million in 2019. Of the total amount, $220 million is anticipated to be spent on real estate and service center expansion while approximately $165 million and $95 million are estimated to be invested in tractors and trailers, and technology and other assets, respectively.

During the first half of the year, Old Dominion rewarded its shareholders with $192.2 million through $27.4 million in dividends and $164.7 million in buybacks.

Upcoming Releases

Investors interested in the broader Transportation sector are keenly awaiting second-quarter earnings reports from key players, namely Expeditors International of Washington, Inc. EXPD, Air Lease Corporation AL and Hertz Global Holdings, Inc HTZ. While Expeditors and Hertz will report financial figures on Aug 6, Air Lease will announce the same on Aug 8.

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