Transport Company Old Dominion Freight Line Posts Weak November Metrics On Weak Economy: Here's Details
Portfolio Pulse from Lekha Gupta
Old Dominion Freight Line Inc (NASDAQ:ODFL) reported a 0.9% Y/Y decline in revenue per day for November 2023, driven by a 2.3% drop in LTL tons per day, despite higher LTL revenue per hundredweight. The decrease in LTL tons per day was due to a 2.9% decline in LTL weight per shipment. Quarter-to-date, LTL revenue per hundredweight was up 3.1%, and excluding fuel surcharges, up 7.6%. The company attributes the revenue decrease to a soft domestic economy but notes improvement in yield metrics and a slight increase in LTL shipments per day. In Q3 FY23, revenue fell 5.5% Y/Y to $1.515 billion, slightly below consensus, while EPS of $3.09 exceeded expectations. ODFL shares closed down 2.16% at $394.79 on Tuesday.
December 06, 2023 | 1:16 pm
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Old Dominion Freight Line Inc reported a decline in November revenue and a decrease in LTL tons per day, indicating a soft domestic economy. However, improvements in yield metrics and a slight increase in LTL shipments per day were noted. Q3 revenue was slightly below consensus, but EPS exceeded expectations.
The reported decline in revenue per day and LTL tons per day for November suggests a negative short-term impact on ODFL's stock price, as it reflects a weaker economic environment affecting the company's operations. The slight miss in Q3 revenue consensus could also contribute to negative investor sentiment. However, the beat on EPS and improvement in yield metrics might offset some of the negative impact. The recent 2.16% drop in share price post-earnings indicates that the market has already reacted to some extent.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100