Old Dominion Q4 EPS beats expectations, announces higher dividend

Overview

• North American LTL carrier's Q4 revenue slightly beat analyst expectations despite a 5.7% decline

• Q4 EPS beat analyst expectations, declining 11.4% yr/yr

• Company announced a 3.6% increase in quarterly cash dividend to $0.29 per share

Outlook

• Old Dominion expects 2026 capital expenditures to total $265 mln

• Company plans $125 mln for real estate and service center expansion

• Old Dominion increases quarterly cash dividend by 3.6% to $0.29 per share

Result Drivers

• LTL VOLUME DECLINE - Co attributed revenue decrease to a 10.7% drop in LTL tons per day, partially offset by higher LTL revenue per hundredweight

• PRICING STRATEGY - Co's disciplined, cost-based pricing approach aimed to offset cost inflation and support investments

• SERVICE LEVELS - Co maintained 99% on-time service and a cargo claims ratio of 0.1%, reflecting operational efficiency

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 10 "strong buy" or "buy", 13 "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 $167.00, about 12% below its February 3 closing price of $189.77

• The stock recently traded at 37 times the next 12-month earnings vs. a P/E of 27 three months ago

Press Release: ID:nBw1hFlK0a

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.