Old Dominion Freight Line, Inc. ODFL is scheduled to report fourth-quarter 2022 results on February 1, before the market open.
The Zacks Consensus Estimate for fourth-quarter earnings of ODFL is currently pegged at $2.68 per share which has been revised 0.74% downward in the past 60 days. The company has a stellar earnings surprise history, having beaten the Zacks Consensus Estimate in each of the preceding four quarters by an average of 8.39%.
Old Dominion Freight Line, Inc. Price and EPS Surprise
Old Dominion Freight Line, Inc. price-eps-surprise | Old Dominion Freight Line, Inc. Quote
Given this backdrop, let’s delve deep to unearth the factors likely to have influenced the performance of Old Dominion in fourth-quarter 2022.
The Zacks Consensus Estimate for ODFL’s fourth quarter revenues currently stands at $1.51 billion. In the fourth quarter of 2021, the company reported revenue of $1.41B. Such an increase in revenue can be correlated with the increase in Less Than Truckload (LTL) revenue per hundredweight. The Zacks Consensus Estimate for the fourth-quarter LTL revenue per hundredweight currently reflects an increase of 16.11% over the year-ago reported number.
On the other hand, the bottom-line performance is expected to have been hurt by high operating expenses (due to a rise in costs pertaining to salaries, wages and benefits and an escalation in operating supplies and expenses). Due to high operating expenses, the Zacks Consensus Estimate for the fourth-quarter operating ratio (operating expenses as a % of revenues) is currently pegged at 73%, which is a deterioration from the third-quarter 2022 actual of 69%.
What Our Model Say
Our proven model predicts an earnings beat for Old Dominion this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks before they're reported with our Earnings ESP Filter.
Old Dominion has an Earnings ESP of +0.05% and a Zacks Rank #3 (Hold).
Highlights of Q3
Based on the earnings released on October 26, ODFL's earnings per share of $3.36 outpaced the Zacks Consensus Estimate of $3.06. The bottom line increased 36% year over year. Revenues of $1,603.7 million lagged the Zacks Consensus Estimate of $1,615.1 million but increased 14.5% year over year. The uptick was backed by a 17.4% increase in Less-Than-Truckload revenue per hundredweight, partially offset by the 2.6% decrease in LTL tons.
Other Stocks to Consider
Besides Old dominion, here are some other stocks from the broader Zacks Transportation which according to our model have the right combination of elements to beat on their fourth-quarter 2022 earnings.
Ardmore Shipping ASC currently has a Zacks Rank #2(Buy) and a positive Earnings ESP of 18.92%. ASC will release results on Feb 14.
The Zacks Consensus Estimate for fourth-quarter earnings is currently pegged at is $1.11. The Zacks Consensus Estimate for fourth-quarter earnings has increased 1.8% over the past 30 days. The company has an impressive earnings surprise history, having outperformed the Zacks Consensus Estimate in three of the preceding four quarters (reporting in-line earnings in the other one), the average beat being 17.42%. You can see the complete list of today's Zacks #1 Rank stocks here.
Expeditors International of Washington EXPD currently has an Earnings ESP of +9.04% and a Zacks Rank of 3. EXPD will release results on Feb 21.
The company has a current Zacks Consensus Estimate of $1.88 which has been revised 8.67% upward in the past 60 days. EXPD has a stellar earnings surprise history, having outperformed the Zacks Consensus Estimate in each of the preceding four quarters by an average of 22.1%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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