Old Dominion's Q4 Earnings Beat Estimates, Revenues Decrease Y/Y

Core Viewpoint - Old Dominion Freight Line (ODFL) reported a decline in earnings and revenues for the fourth quarter of 2024, with earnings per share of $1.23, which exceeded estimates but represented a 16.3% year-over-year decrease. Revenue also fell by 7.3% year-over-year to $1.39 billion, impacted by a decline in less-than-truckload (LTL) tons per day [1][2]. Financial Performance - Earnings per share for ODFL were $1.23, beating the Zacks Consensus Estimate of $1.17 but down 16.3% from the previous year [1]. - Total revenues were $1.39 billion, slightly above the Zacks Consensus Estimate of $1.38 billion but down 7.3% year-over-year [2]. - LTL service revenues were $1.37 billion, a decrease of 7.4% year-over-year, while revenues from other services fell 3.8% to $13.5 million [2]. - LTL weight per shipment decreased by 0.7%, and LTL revenue per shipment fell by 1.1% [3]. - Total operating expenses decreased by 2.1% year-over-year to $1.05 billion, with operating income down 20.7% to $334.02 million [3]. Cash Flow and Capital Expenditures - ODFL ended the quarter with cash and cash equivalents of $108.7 million, down from $433.8 million at the end of 2023 [4]. - Long-term debt decreased to $40 million from $60 million at the end of 2023 [4]. - Capital expenditures for the quarter were $170.9 million, with total anticipated capital expenditures for 2024 expected to be $750 million [5]. Shareholder Returns - ODFL announced a quarterly cash dividend of 28 cents per share, reflecting a 7.7% increase compared to the previous year's first-quarter dividend after accounting for a two-for-one stock split [6]. - The company paid out dividends totaling $223.6 million and repurchased shares worth $967.3 million in the first nine months of the year [5]. Industry Context - Other transportation companies, such as Delta Air Lines and J.B. Hunt Transport Services, reported mixed results in the same quarter, with Delta showing significant year-over-year earnings growth due to low fuel costs, while J.B. Hunt experienced a decline in revenues primarily due to lower fuel surcharge revenues [8][10].