ODFL - Why Old Dominion Freight Line Stock Crashed on Wednesday
2024-04-24 15:04:59 ET
Shares of less-than-truckload trucker Old Dominion Freight Line (NASDAQ: ODFL) fell 10.2% through 1:15 p.m. ET despite largely meeting market expectations for its first-quarter earnings this morning.
Heading into the quarter, analysts had forecast Old Dominion would earn $1.34 per share on sales of $1.47 billion. As it turned out, earnings were $1.34, and revenue only just missed expectations at $1.46 billion. So are investors overreacting here?
Not necessarily, no. You see, expectations for Old Dominion Freight Lines have been running pretty hot, with most analysts agreeing the company will grow earnings at about 23% annually over the next five years. It's this expectation that the stodgy shipping stock will turn out to actually be a growth stock that explains why Old Dominion has been outperforming the S&P 500 lately, driving its stock price up to nearly 40 times earnings today, up 44% over the last 52 weeks.
For further details see:
Why Old Dominion Freight Line Stock Crashed on Wednesday