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What's in the Offing for Old Dominion (ODFL) in Q2 Earnings?

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Old Dominion Freight Line ODFL is scheduled to report second-quarter 2021 results on Jul 28, before market open.

Let’s see how things are shaping up for this earnings season.

Old Dominion Freight Line, Inc. Price and EPS Surprise

Old Dominion Freight Line, Inc. Price and EPS Surprise
Old Dominion Freight Line, Inc. Price and EPS Surprise

Old Dominion Freight Line, Inc. price-eps-surprise | Old Dominion Freight Line, Inc. Quote

Gradual recovery in the freight environment is anticipated to have aided Old Dominion’s second-quarter performance. This is expected to get reflected in less than truckload (LTL) revenue per hundredweight. Notably, the Zacks Consensus Estimate for LTL revenue per hundredweight in the second quarter suggests a rise of 12.1% from the year-ago period’s reported number and a marginal improvement from first-quarter 2021’s reported figure. The anticipated improvement in LTL revenue per hundredweight is likely to get reflected in revenues from LTL services, the company’s major revenue-generating segment. Per the consensus estimate, LTL tonnage per day surged 25% from the year-ago-quarter’s reported figure.

Improvement in operating ratio (operating expenses, as a percentage of revenues) is likely to get reflected in second-quarter bottom line (driven by higher revenues). The Zacks Consensus Estimate for operating ratio stands at 73% for the quarter to be reported, indicating an improvement from 78% reported in second-quarter 2020. Lower the value of this key measure of efficiency, the better.

Higher operating expenses (due to rise in costs pertaining to salaries, wages & benefits) and high capital expenditures are likely to have hurt the company’s bottom line.

What Does the Zacks Model Say?

Our proven model does not conclusively predict an earnings beat for Old Dominion this time around. This is because a stock needs to have a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. However, that is not the case here. You can see the complete list of today’s Zacks #1 Rank stocks here.

Earnings ESP: Old Dominion has an Earnings ESP of -0.89% as the Most Accurate Estimate is pegged at $2.15, lower than the Zacks Consensus Estimate of $2.17. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Old Dominion carries a Zacks Rank #3.

Highlights of Q1 Earnings

Old Dominion’s first-quarter earnings per share earnings per share of $1.70 outpaced the Zacks Consensus Estimate by 12 cents. The bottom line surged 53.2% year over year. Revenues of $1126.5 million also surpassed the Zacks Consensus Estimate of $1,106.6 million and increased 14.1% year over year as well. The upside was led by 8.3% increase in LTL (Less-Than-Truckload) tons and a 5.6% uptick in LTL revenue per hundredweight.

Stocks to Consider

Investors interested in the broader Transportation sector may also consider Hawaiian Holdings, Inc. HA, Canadian Pacific Railway Limited CP and Allegiant Travel Company ALGT. These stocks too possess the right combination of elements to beat on earnings this reporting cycle.

Hawaiian Holdings has an Earnings ESP of +2.93% and is Zacks #3 Ranked, presently. The company will release second-quarter 2021 results on Jul 27.

Canadian Pacific has an Earnings ESP of +0.71% and carries a Zacks Rank #3, at present. The company will release second-quarter 2021 results on Jul 28.

Allegiant has an Earnings ESP of +12.39% and is currently a #3 Ranked player. The company will release second-quarter 2021 results on Jul 28.


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Canadian Pacific Railway Limited (CP) : Free Stock Analysis Report

Old Dominion Freight Line, Inc. (ODFL) : Free Stock Analysis Report

Hawaiian Holdings, Inc. (HA) : Free Stock Analysis Report

Allegiant Travel Company (ALGT) : Free Stock Analysis Report

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