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Old Dominion (ODFL) Q2 Earnings Beat, Revenues Miss, Fall Y/Y
Old Dominion Freight Line ODFL reported mixed second-quarter 2023 results, with better-than-expected earnings per share but lower-than-expected revenues. Quarterly earnings per share of $2.65 surpassed the Zacks Consensus Estimate of $2.63 but declined 19.7% year over year. Results were hurt by softness pertaining to the domestic economy, which resulted in a challenging operating environment.
Revenues of $1,413.2 million lagged the Zacks Consensus Estimate of $1,445.6 million and decreased 15.2% year over year. The downside was due to lackluster less-than-truckload (LTL) revenues.
The LTL services unit logged a total of $1,397.81 million, down 15% year over year. Revenues from the segment were also below our estimate of $1,428.9 million. Revenues from other services fell 32.5% to $15.37 million and fell short of our projection of $18.4 million.
In the quarter under review, LTL weight per shipment dipped 2.9%, while LTL revenue per shipment declined 4%. LTL shipments and LTL shipments per day were down 11.5% each, year over year. LTL revenue per hundredweight decreased 1.1%.
Total operating expenses tumbled 11.8% to $1.02 billion and lagged our estimate of $1.06 billion. Operating income declined 23% to $391.59 million and topped our projection of $383.7 million.
Old Dominion exited the June quarter with cash and cash equivalents worth $55.14 million compared with $186.3 million at the end of 2022. Long-term debt was $59.97 million compared with $79.96 million at 2022 end. Capital expenditures incurred in the reported quarter were $244.7 million.
Old Dominion paid out dividends worth $87.8 million and repurchased shares worth $302.2 million in the first half of 2023.
In a shareholder-friendly move, ODFL’s board approved a new share repurchase program that authorizes the company to buy back up to $3 billion of its outstanding stock. This new repurchase program will begin after the completion of the existing $2 billion repurchase program, under which $376.9 million remains available and uncommitted as of Jun 30.
For 2023, ODFL still anticipates its aggregate capital expenditures to be approximately $700 million. Of the total, $260 million is anticipated to be invested in real estate and service center expansion projects, $365 million in tractors and trailers, and $75 million in information technology and other assets.
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.
Q2 Performance of Other Transportation Companies
J.B. Hunt Transport Services’ JBHT second-quarter 2023 earnings of $1.81 per share missed the Zacks Consensus Estimate of $1.97 and declined 25.2% year over year.
Total operating revenues of $3,132.6 million also lagged the Zacks Consensus Estimate of $3,347.5 million. The top line fell 18.4% year over year.
The downfall was due to a decline in revenue per load of 24% in Integrated Capacity Solutions, 13% in Intermodal and 21% in Truckload. A 4% decrease in productivity in Dedicated Capacity Solutions added to the woes. Changes in customer rate, freight mix and lower fuel surcharge revenues resulted in this downtick.
Delta Air Lines’ DAL second-quarter 2023 earnings (excluding 16 cents from non-recurring items) of $2.68 per share comfortably beat the Zacks Consensus Estimate of $2.42. DAL reported earnings of $1.44 a year ago.
Revenues of $15,578 million beat the Zacks Consensus Estimate of $14,991.6 million. Total revenues increased 12.69% on a year-over-year basis driven by higher air-travel demand. The adjusted operating margin was 17.1% compared with 11.7% in the prior-year period.
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Delta Air Lines, Inc. (DAL) : Free Stock Analysis Report
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