Old Dominion Freight's Q2 revenue misses expectations

Overview

• Old Dominion Q2 rev declines 6.1%, missing analyst expectations, per LSEG data

• EPS for Q2 falls 14.2% to $1.27, missing analyst estimates, per LSEG data

• Revenue decline due to lower LTL tons per day, offset by higher revenue per hundredweight

Outlook

• Company expects 2025 capital expenditures to total approximately $450 mln

• Old Dominion cites soft domestic economy impacting demand for services

• Company plans $210 mln for real estate and service center expansion

• Old Dominion maintains focus on yield management despite economic challenges

Result Drivers

• LTL TONNAGE DECLINE - 9.3% decrease in LTL tons per day due to lower shipments and weight per shipment

• YIELD MANAGEMENT - 5.3% increase in LTL revenue per hundredweight excluding fuel surcharges, offsetting cost inflation

• OPERATING COSTS - Increased operating ratio due to revenue decline and higher group health and dental costs

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 8 "strong buy" or "buy", 15 "hold" and 3 "sell" or "strong sell"

• The average consensus recommendation for the ground freight & logistics peer group is "buy."

• Wall Street's median 12-month price target for Old Dominion Freight Line Inc is $170.00, about 4.6% above its July 29 closing price of $162.12

• The stock recently traded at 29 times the next 12-month earnings vs. a P/E of 28 three months ago

Press Release: ID:nBwc21mKZa