First look: Old Dominion posts Q4 beat

Core Insights - Old Dominion Freight Line exceeded earnings expectations for Q4, driven by cost reductions and higher yields despite declining volumes [1][6] - The company reported an EPS of $1.09, which is 3 cents above consensus but 14 cents lower year-over-year [1][2] Financial Performance - Revenue for Q4 was $1.31 billion, down 5.7% year-over-year but slightly above consensus estimates [2][3] - Operating ratio was reported at 76.7%, which is 80 basis points worse year-over-year and 240 basis points worse sequentially, yet better than management's guidance [4] - Salaries, wages, and benefits as a percentage of revenue increased by 180 basis points year-over-year, despite a 6% reduction in headcount [5] Operational Metrics - Tonnage per day decreased by 10.7% year-over-year, with daily shipments down 9.7% and weight per shipment down 1% [3] - Revenue per hundredweight increased by 5.6% year-over-year, with a 4.9% increase when excluding fuel surcharges [3] - Average headcount was 20,706, down 6% year-over-year, with shipments per day per employee decreasing by 4% [5] Future Outlook - The company is targeting capital expenditures of approximately $265 million for 2026, down from $415 million last year [6]