FMP

FMP

Enter

Old Dominion Freight Line, Inc. (NASDAQ: ODFL) Third-Quarter Earnings Analysis

-

twitterlinkedinfacebook
blog post cover photo

Image credit: Google Images

  • Earnings Per Share (EPS) slightly exceeded estimates but showed a year-over-year decrease.
  • Revenue fell short of estimates with a notable decline in LTL tons per day impacting overall performance.
  • Financial health remains strong with a low debt-to-equity ratio and a healthy current ratio.

Old Dominion Freight Line, Inc. (NASDAQ: ODFL) is a key player in the freight transportation industry, offering less-than-truckload (LTL) services across North America. Competing with giants like FedEx Freight and XPO Logistics, Old Dominion strives to uphold its market position amidst stiff competition.

On October 23, 2024, Old Dominion disclosed its third-quarter earnings, reporting an EPS of $1.43. This figure slightly surpassed the anticipated $1.42, meeting the Zacks Consensus Estimate. However, it represented a 7.1% decrease from the prior year's EPS of $1.55, indicating challenges in sustaining profit margins.

The company's quarterly revenue was $1.47 billion, missing the projected $1.49 billion and marking a 3% decline from the previous year. This decrease was largely attributed to a 4.8% reduction in LTL tons per day, adversely affecting the revenue from LTL services, which amounted to $1.46 billion, down 2.9% year over year.

Despite these hurdles, Old Dominion's financial health remains robust. The company boasts a debt-to-equity ratio of 0.01, indicating a minimal reliance on debt financing. Its current ratio of 1.33 suggests a solid capability to cover short-term liabilities with its assets, ensuring stability in fluctuating market conditions.

Valuation metrics like a price-to-earnings (P/E) ratio of 32.60 and a price-to-sales ratio of 6.82 demonstrate the market's optimism regarding Old Dominion's earnings and revenue prospects. Furthermore, an enterprise value to operating cash flow ratio of 24.08 underscores the company's efficient cash generation, a vital aspect for ongoing operations and future expansion.

Other Blogs

May 14, 2024 11:41 AM - Sanzhi Kobzhan

The easiest way to calculate stock’s target price and why the target price is important.

A stock's target price, also known as its fair value, is an indication of what a share can cost based on the company’s forecasted financial statements. It is important to know a stock's fair value to find undervalued stocks with great growth potential. Let's consider how investment analysts calculat...

blog post title

May 24, 2024 9:30 AM - Rajnish Katharotiya

How to Access and Analyze Earnings Call Transcripts

Earnings call transcripts are invaluable resources for investors, analysts, and financial enthusiasts. They provide insights into a company's performance, strategy, and future outlook, making them essential for making informed investment decisions. With Financial Modeling Prep, Earnings Call Transcr...

blog post title

May 27, 2024 3:30 PM - Rajnish Katharotiya

The best 5 GPU stocks other than NVDA

In the ever-evolving world of technology, certain sectors have consistently demonstrated exceptional growth and innovation. The graphics processing units (GPUs) industry is one such sector, offering investors a golden opportunity for potentially high returns. In this blog, we'll delve into why inves...

blog post title
FMP

FMP

Financial Modeling Prep API provides real time stock price, company financial statements, major index prices, stock historical data, forex real time rate and cryptocurrencies. Financial Modeling Prep stock price API is in real time, the company reports can be found in quarter or annual format, and goes back 30 years in history.
twitterlinkedinfacebookinstagram
2017-2024 © Financial Modeling Prep