Old Dominion (ODFL) Posts Solid August LTL Unit Performance

Old Dominion Freight Line, Inc. ODFL provided an update on the performance of its less-than-truckload (LTL) segment, which is its primary revenue generator, in August.

With an increase in LTL revenue per hundredweight, which was partially offset by a 0.9% decline in LTL tons per day, ODFL’s revenue per day climbed 14.5% year over year in August 2022. LTL tons per day benefited from a 1.8% increase in LTL weight per shipment. The metric was partly hurt by a 2.7% decrease in LTL shipments per day.

Quarter to date, Old Dominion’s LTL revenue per hundredweight and LTL revenue per hundredweight excluding fuel surcharges jumped 18.1% and 7.3% year over year, respectively.

Greg C. Gantt, president and chief executive officer of Old Dominion, stated, "Old Dominion produced solid revenue growth for the first two months of the third quarter. While our volumes decreased on a year-over-year basis, we continued to improve our yield through the consistent execution of our yield management initiatives. Providing shippers with superior service is required to support these initiatives, and our service levels remain best-in-class. We remain focused on delivering superior service at a fair price and believe customer demand for our value proposition remains strong, which positions us to win further market share."

Old Dominion Freight Line, Inc. Price

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Zacks Rank and Stocks to Consider

Currently, Old Dominion carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Some better-ranked stocks in the broader Zacks Transportation sector that investors can consider are GATX Corporation GATX, Triton International Limited TRTN and Teekay Tankers Ltd. TNK, each carrying a Zacks Rank #2 (Buy).

GATX Corporation has an expected earnings growth rate of 17.8% for the current year. GATX delivered a trailing four-quarter earnings surprise of 28.9%, on average.

The Zacks Consensus Estimate for GATX’s current-year earnings has improved 2.1% over the past 90 days. Shares of GATX have gained 5.9% over the past year.

Triton has an expected earnings growth rate of 22.4% for the current year. TRTN delivered a trailing four-quarter earnings surprise of 7.5%, on average. TRTN has a long-term expected growth rate of 10%.

The Zacks Consensus Estimate for TRTN’s current-year earnings has improved 4.2% over the past 90 days. Shares of TRTN have increased 12.8% over the past year.

Teekay Tankers has an expected earnings growth rate of 140.1% for the current year. TNK delivered a trailing four-quarter earnings surprise of 46.1%, on average. TNK has a long-term expected growth rate of 3%.

The Zacks Consensus Estimate for TNK’s current-year earnings has improved more than 100% over the past 90 days. Shares of TNK have soared 106.3% over the past year.

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