ODFL - Old Dominion stock drives lower on earnings miss

2023-04-26 07:24:16 ET

Old Dominion Freight Lines ( NASDAQ: ODFL ) shares dipped on Wednesday after the company under-delivered on Q1 numbers.

The company noted a decrease in LTL revenue that included an 11.9% decrease in LTL tonnage per day and an 80 basis point deterioration in operating ratio for the segment. Earnings per diluted share came in at $2.58 for the quarter as total revenue reached $1.44B. Analysts had anticipated $2.70 and $1.48B, respectively.

“Old Dominion’s first quarter financial results reflect continued softness in the domestic economy and a challenging operating environment,” CEO Greg C. Gantt commented. “The resulting decrease in our volumes contributed to our first decline in quarterly revenue and earnings per diluted share in over two and a half years.”

However, he noted that the company’s overall market share remained “relatively consistent” given the overall industry softness.  The overall operating ratio for the first quarter increased 50 basis points to 73.4% as compared to Q1 2022.

“While we improved our direct costs as a percent of revenue, the decrease in these costs was more than offset by an increase in our overhead costs that are more fixed in nature,” Gantt said. “Many of these fixed cost categories increased as a percent of revenue due to the deleveraging effect associated with the decrease in revenue. In addition, depreciation and certain operating supplies and expenses increased as a result of our long-term investments in service center and equipment capacity.”

Shares of Old Dominion ( ODFL ) dipped 1.9% on light premarket volume after the print .

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