Company Overview - Old Dominion Freight Line (ODFL) shares have increased by approximately 3% over the past month, underperforming the S&P 500 [1] - The most recent earnings report indicates that estimates have trended downward, with a consensus estimate shift of -6.62% [2] Performance Metrics - Old Dominion has a strong Growth Score of A but a low Momentum Score of D, resulting in an aggregate VGM Score of D [3] - The stock is currently rated with a Zacks Rank 4 (Sell), indicating expectations of below-average returns in the coming months [4] Industry Comparison - Old Dominion is part of the Zacks Transportation - Truck industry, where competitor JB Hunt (JBHT) has seen a 4.6% increase in shares over the past month [5] - JB Hunt reported revenues of $2.92 billion for the last quarter, reflecting a year-over-year decline of -0.8%, with EPS of $1.17 compared to $1.22 a year ago [5] - JB Hunt is expected to post earnings of $1.36 per share for the current quarter, showing a year-over-year increase of +3%, but has also experienced a -1.8% change in the Zacks Consensus Estimate over the last 30 days [6]

Group 1 - The market has presented numerous investment opportunities in 2023, leading to increased capital deployment by the analyst [1] - Investments have been made in energy stocks, cyclical industrials, and a new stock has been added to the portfolio [1] - The analyst holds long positions in several companies, including TPL, LB, FIX, ODFL, and UNP, through various financial instruments [1]

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ________ to ________ . UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2025 or Commission File Number: 0-19582 OLD DOMINION FREIGHT LINE, INC. Securities registered pursuant to Section 12(b) of the Act: (Exact name of registr ...

Group 1 - The article emphasizes the difficulty of forecasting the economy, highlighting that predictions are inherently uncertain and based on current data and developments [1] - It mentions that the research provided by iREIT on Alpha includes a variety of investment vehicles such as REITs, mREITs, Preferreds, BDCs, MLPs, and ETFs, catering to income-seeking investors [1] Group 2 - The article includes a disclosure regarding the author's beneficial long position in specific stocks, indicating a vested interest in ODFL, FIX, and CP [1] - It clarifies that the opinions expressed are personal and not influenced by compensation from any company mentioned [1]

Financial Data and Key Metrics Changes - Old Dominion's revenue for Q1 2025 was $1.37 billion, reflecting a 5.8% decrease from the prior year, driven by a 6.3% decrease in LTL tons per day, partially offset by a 2.2% increase in LTL revenue per hundredweight [20][22] - The operating ratio increased by 190 basis points to 75.4% due to revenue decline impacting operating expenses, contributing to a 130 basis point increase in overhead costs as a percentage of revenue [23][24] - Cash flow from operations totaled $336.5 million, with capital expenditures at $88.1 million, and $201.1 million utilized for share repurchase [28] Business Line Data and Key Metrics Changes - The company experienced a 5% decline in LTL shipments per day, but improved platform shipments per hour and P&D shipments per hour [10][20] - The monthly sequential changes in LTL tons per day showed a decrease of 3.8% in January, an increase of 1.9% in February, and an increase of 4.8% in March [21] Market Data and Key Metrics Changes - The company maintained a market share of approximately 12% to 13% during the downturn, indicating resilience in a challenging environment [45] - The company noted that retail accounts for about 25% to 30% of its business, with expectations for continued growth in this segment due to the shift towards e-commerce [62] Company Strategy and Development Direction - The company remains focused on executing its long-term strategic plan, emphasizing operational efficiency and cost control to protect its operating ratio [9][12] - Capital expenditures for 2025 are expected to total approximately $450 million, a reduction of $125 million from the initial plan, reflecting a cautious approach amid economic uncertainty [25][26] - The company believes that investing through the economic cycle is crucial for long-term market share gains [24] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism based on customer feedback and improving macroeconomic indicators, although uncertainty remains regarding the overall economic recovery [13][14] - The management team highlighted the importance of maintaining superior service and disciplined yield management to support long-term growth [11][18] Other Important Information - The effective tax rate for Q1 2025 was 24.8%, a decrease from 25.6% in Q1 2024, with expectations to remain the same for Q2 2025 [28] Q&A Session Summary Question: Can you provide insights on seasonality and the potential impact of ongoing economic conditions? - Management indicated that the typical sequential increase in margins from Q1 to Q2 is based on revenue growth, which is uncertain given current economic conditions [34][36] Question: What is the breakdown of April's revenue per day and any changes in pricing environment? - Management noted that April's revenue per day is impacted by the timing of holidays, with weight per shipment dropping slightly, but they remain committed to their long-term yield management strategy [40][44] Question: How does the company view the impact of retail customers and competition in the LTL market? - Management sees retail as a significant opportunity, especially with the growth of e-commerce, and believes they can leverage their superior service to capture market share [62][65] Question: What are the expectations for capital expenditures and their relation to macroeconomic conditions? - Management clarified that the reduction in capital expenditures is a strategic decision to navigate economic uncertainty while still preparing for future growth [25][52] Question: How does the company plan to maintain pricing power amid competitive pressures? - Management emphasized their consistent approach to yield management and the importance of demonstrating value to customers to justify price increases [80][104]

Company Performance - Old Dominion Freight Line (ODFL) reported first-quarter 2025 earnings per share of $1.19, exceeding the Zacks Consensus Estimate by 3.5% but down 11.2% year over year [1] - Revenues for the quarter were $1.37 billion, surpassing the Zacks Consensus Estimate by 0.5% but decreasing 5.8% year over year [1] - Revenues from less-than-truckload (LTL) services were $1.36 billion, down 5.9% year over year, aligning with estimates [2] - Total operating expenses decreased by 3.4% year over year to $1.04 billion, while operating income fell 12.5% to $338.06 million [3] Operational Metrics - LTL weight per shipment decreased by 1.4%, while LTL revenue per shipment increased by 0.7% year over year [3] - LTL shipments and LTL shipments per day declined by 6.5% and 5%, respectively, year over year [3] - LTL revenue per hundredweight rose by 2.2% [3] Financial Position - At the end of the quarter, cash and cash equivalents stood at $97.2 million, down from $581 million at the end of the first quarter of 2023 [4] - Long-term debt decreased to $40 million from $60 million at the end of the first quarter of 2023 [4] - Capital expenditures for the quarter were $88.1 million, with an expectation of total capital expenditures for 2025 to be approximately $450 million, a reduction of $125 million from initial projections [5] Shareholder Returns - The company paid out dividends totaling $59.5 million and repurchased shares worth $201.1 million during the first quarter of 2025 [5] Industry Context - Landstar System (LSTR), a competitor in the transportation-truck industry, is expected to report its first-quarter earnings later this month, with anticipated challenges from weak freight demand and high inflationary pressure [6][7]

Financial Data and Key Metrics Changes - Old Dominion's revenue for Q1 2025 was $1.37 billion, a decrease of 5.8% year-over-year, attributed to a 6.3% decline in LTL tons per day, partially offset by a 2.2% increase in LTL revenue per hundredweight [16][18] - The operating ratio increased by 190 basis points to 75.4% due to revenue decline impacting operating expenses [18] - Cash flow from operations totaled $336.5 million, with capital expenditures at $88.1 million and share repurchase program utilizing $201.1 million [21] Business Line Data and Key Metrics Changes - LTL tons per day decreased by 6.3%, with a sequential decrease of 3.5% compared to Q4 2024 [16] - Platform shipments per hour and PND shipments per hour improved despite a 5% decline in LTL shipments per day [7][8] - Employee benefit costs increased to 38.2% of salaries and wages from 35.6% in Q1 2024 [20] Market Data and Key Metrics Changes - The company experienced a 5% decline in LTL shipments per day, but saw signs of improved demand in February and March, aligning with normal seasonality [10][16] - The company maintained a market share of 12% to 13% during the downturn [37] Company Strategy and Development Direction - The company remains focused on maximizing operating efficiencies and reducing discretionary spending to protect the operating ratio [7] - Long-term growth strategy includes balancing operating density and yield management, with a commitment to investing through economic cycles [19][20] - The company plans to defer certain capital projects and reduce new equipment purchases, expecting capital expenditures to total approximately $450 million in 2025, down from initial plans [20] Management's Comments on Operating Environment and Future Outlook - Management noted continued softness in the domestic economy but expressed cautious optimism based on customer feedback and improving macroeconomic data [9][10] - The company is focused on controlling factors within its control, such as executing its long-term strategic plan and maintaining high service levels [12][13] - Management acknowledged uncertainty in the economy but remains committed to long-term profitable growth and market share expansion [13][19] Other Important Information - The effective tax rate for Q1 2025 was 24.8%, down from 25.6% in Q1 2024, with expectations to remain the same for Q2 2025 [21] - The company achieved 99% on-time service performance and a cargo claims ratio below 0.1% [8] Q&A Session Summary Question: Can you provide insights on seasonality and potential impacts of ongoing economic conditions? - Management indicated that typical seasonality shows a 300 to 350 basis point sequential increase from Q1 to Q2, but current expectations are for a more muted increase due to economic uncertainty [27][28] Question: What is the breakdown of April's revenue performance? - Management refrained from providing detailed breakdowns due to the impact of the Good Friday holiday but noted a drop in weight per shipment and anticipated revenue per hundredweight to be in the 5% to 5.5% range for the quarter [34][36] Question: How does the company view the impact of retail customers on LTL? - Management stated that retail accounts for 25% to 30% of their business and sees opportunities for growth as e-commerce expands, emphasizing their superior service as a competitive advantage [51][54] Question: What are the expectations regarding pricing and competitive dynamics? - Management expressed confidence in maintaining pricing power and successfully achieving yield increases, despite competitive pressures [63][64] Question: How does the company plan to address potential changes in the NFC? - Management believes that changes in the NFC will not materially impact yields, as they focus on understanding costs and pricing appropriately [84]

For the quarter ended March 2025, Old Dominion Freight Line (ODFL) reported revenue of $1.37 billion, down 5.8% over the same period last year. EPS came in at $1.19, compared to $1.34 in the year-ago quarter.The reported revenue represents a surprise of +0.47% over the Zacks Consensus Estimate of $1.37 billion. With the consensus EPS estimate being $1.15, the EPS surprise was +3.48%.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to d ...

Old Dominion Freight Line (ODFL) came out with quarterly earnings of $1.19 per share, beating the Zacks Consensus Estimate of $1.15 per share. This compares to earnings of $1.34 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 3.48%. A quarter ago, it was expected that this trucking company would post earnings of $1.17 per share when it actually produced earnings of $1.23, delivering a surprise of 5.13%.Over the last four quart ...

Financial Performance - Total revenue for Q1 2025 was $1,374.9 million, a decrease of 5.8% compared to $1,460.1 million in Q1 2024[2] - LTL services revenue decreased by 5.9% to $1,360.8 million from $1,446.7 million year-over-year[2] - Operating income fell by 12.5% to $338.1 million, with an operating ratio of 75.4%, up from 73.5% in the previous year[2][4] - Net income for Q1 2025 was $254.7 million, down 12.9% from $292.3 million in Q1 2024[2] - Diluted earnings per share decreased by 11.2% to $1.19, compared to $1.34 in the same quarter last year[2] Operational Metrics - LTL tons per day decreased by 6.3%, driven by a 5.0% drop in LTL shipments per day and a 1.4% decrease in weight per shipment[3] - LTL intercity miles decreased by 7.4% to 157,259 in Q1 2025 compared to 169,766 in Q4 2024[17] - LTL tons dropped by 7.8% to 2,087 in Q1 2025 from 2,264 in Q4 2024[17] - Average active full-time employees decreased by 4.7% to 21,817 in Q1 2025 from 22,891 in Q4 2024[17] - LTL shipments per day decreased by 5.0% to 44,566 in Q1 2025 from 46,931 in Q4 2024[17] Revenue Metrics - LTL revenue per hundredweight increased by 2.2% to $32.67 in Q1 2025 from $31.98 in Q4 2024[17] - LTL revenue per shipment increased by 0.7% to $485.79 in Q1 2025 from $482.24 in Q4 2024[17] Cash Flow and Capital Expenditures - Cash flow from operating activities was $336.5 million, with cash and cash equivalents at $97.2 million as of March 31, 2025[5] - Capital expenditures for Q1 2025 totaled $88.1 million, with an expected total of approximately $450 million for the year, a reduction of $125 million from the initial plan[6] Shareholder Returns - Shareholder return programs included $201.1 million in share repurchases and $59.5 million in cash dividends during the quarter[7] Asset and Liability Changes - Total current assets increased to $734,384,000 in Q1 2025 from $720,683,000 in Q4 2024, reflecting a growth of 1.0%[19] - Total liabilities rose to $1,255,970,000 in Q1 2025 from $1,246,807,000 in Q4 2024[19] - Equity decreased to $4,235,324,000 in Q1 2025 from $4,244,588,000 in Q4 2024[19] Strategic Focus - The company maintains a focus on delivering superior service and disciplined yield management to capture market share despite economic uncertainties[8]