Old Dominion’s tonnage turns positive; recovery needs demand inflection
Old Dominion reported positive tonnage growth in September for the first time in more than two years, but company executives emphasized that returning to upcycle-level performance likely requires a wider recovery in demand, which…
Less-than-truckload carrier Old Dominion Freight Line saw tonnage turn positive for the first time in over two years during September. Executives from the company cited favorable market share opportunities on Wednesday, with customers exploring multiyear contracts and 3PLs seeking long-term capacity commitments. However, the company acknowledged that a more material demand inflection—requiring a resolution to record energy prices—will be needed to drive upcycle-like results.
Old Dominion (NASDAQ: ODFL) reported third-quarter earnings per share of $1.65 ahead of the market open on Wednesday. The result was 4 cents better than the consensus estimate and 37 cents higher year over year.
Revenue of $1.59 billion was 13% higher y/y (up 5% y/y excluding fuel surcharges) and $20 million better than analysts’ expectations. (Diesel prices were 48% higher y/y during the quarter.)
Tonnage per day was flat y/y, with a 13% increase in yield (revenue per hundredweight) driving the topline increase. Yield was up 5% y/y (ex-fuel), slightly better than management’s guidance (plus-4% to plus-4.5%).
This story was originally published by FreightWaves. Read the full story at FreightWaves →
Conversation