Old Dominion Freight Line, Inc. (ODFL), headquartered in Thomasville, North Carolina, is a leading transportation and logistics company specializing in less-than-truckload (LTL) shipping services. With a market cap of $38.6 billion, Old Dominion is recognized for its commitment to operational efficiency, customer satisfaction, and sustainable practices. Serving a diverse range of industries across North America, the company is set to report its fourth-quarter earnings on Wednesday, Jan. 29.
Ahead of the event, analysts expect Old Dominion to report a profit of $1.17 per share, down 20.4% from $1.47 in the year-ago quarter. However, the company has consistently surpassed or matched Wall Street’s adjusted EPS projections in each of the past four quarters.
The company's Q3 adjusted earnings of $1.43 per share were in line with the consensus estimate. Old Dominion's quarterly performance was impacted by weak freight demand, lower sales volumes, and declining margins.
For fiscal 2024, analysts expect Old Dominion to report an adjusted EPS of $5.42, down 3.7% from $5.63 in fiscal 2023. However, in fiscal 2025, EPS is expected to rebound, growing by 9% to $5.91.
Old Dominion's shares have dropped 4.8% over the past 52 weeks, significantly lagging behind the S&P 500 Index’s ($SPX) 27.2% gains and the Industrial Select Sector SPDR Fund’s (XLI) 18.9% returns over the same period.
On Oct. 23, shares of Old Dominion dropped nearly 5.5% following the release of its disappointing Q3 earnings. The company reported revenue of $1.47 billion, falling short of analysts' expectations of $1.49 billion by 1.3%. EBITDA came in at $488.5 million, missing estimates by 1.7%.
Despite these setbacks, its free cash flow margin saw a significant improvement, rising to 46.9% from 17.3% in the prior year. However, sales volumes continued to weaken, declining 1.9% year-over-year.
The consensus opinion on ODFL stock is cautious, with an overall “Hold” rating. Out of the 20 analysts covering the stock, 3 recommend a “Strong Buy,” one suggests a “Moderate Buy,” 14 advise a “Hold,” and two suggest a “Strong Sell.”
ODFL's average analyst price target is $204.31, indicating a potential upside of 11.8% from the current levels.
On the date of publication, Rashmi Kumari did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here. More news from Barchart- Analysts Love These 2 Retail Stocks for 2025
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