Old Dominion Freight Line (NASDAQ:ODFL) Trading 7.7% Higher After Strong Earnings

Old Dominion Freight Line, Inc. (NASDAQ:ODFL) shares were up 7.7% during trading on Wednesday following a better than expected earnings announcement. The company traded as high as $205.24 and last traded at $204.4530. Approximately 2,983,070 shares traded hands during mid-day trading, an increase of 44% from the average daily volume of 2,070,855 shares. The stock had previously closed at $189.77.

The transportation company reported $1.09 EPS for the quarter, beating the consensus estimate of $1.06 by $0.03. The firm had revenue of $1.31 billion for the quarter, compared to analyst estimates of $1.30 billion. Old Dominion Freight Line had a net margin of 18.97% and a return on equity of 24.92%. Old Dominion Freight Line’s revenue for the quarter was down 5.7% compared to the same quarter last year. During the same quarter last year, the firm posted $1.23 earnings per share.

Old Dominion Freight Line Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, March 18th. Investors of record on Wednesday, March 4th will be issued a dividend of $0.29 per share. This represents a $1.16 annualized dividend and a dividend yield of 0.6%. The ex-dividend date is Wednesday, March 4th. This is a positive change from Old Dominion Freight Line’s previous quarterly dividend of $0.28. Old Dominion Freight Line’s dividend payout ratio (DPR) is presently 22.54%.

More Old Dominion Freight Line News

Here are the key news stories impacting Old Dominion Freight Line this week:

• Positive Sentiment: Q4 results beat top-and-bottom-line estimates: ODFL reported GAAP EPS of $1.09 vs. consensus $1.06 and revenue of $1.31B vs. $1.30B, showing better-than-expected profitability and margin performance for the quarter. Read More.
• Positive Sentiment: Pricing power / operating efficiency: management highlighted pricing that offset weak volumes; operating income of $304.25M and an operating ratio of 76.7% indicate the company sustained margins in a tough trucking market. Read More.
• Positive Sentiment: Dividend increase: the board raised the quarterly dividend to $0.29 (3.6% increase vs. prior $0.28), signaling confidence in cash flow and returning capital to shareholders — a tailwind for investor sentiment. Read More.
• Neutral Sentiment: Analyst and metric reviews: several analyst notes and write-ups drill into unit trends and key metrics vs. estimates — useful for gauging sustainability of pricing and margin trends but not new company-side guidance. Read More.
• Neutral Sentiment: Press release & conference call available: transcripts and the company press release provide management commentary you can use to validate whether pricing gains are structural. Read More.
• Negative Sentiment: Volume weakness and year-over-year softness: revenue declined ~5.7% y/y and shipments fell, and EPS of $1.09 is below last year’s $1.23 — showing demand softness that could pressure future quarters if pricing can’t fully offset volume declines. Read More.

Analysts Set New Price Targets

ODFL has been the topic of a number of recent research reports. Truist Financial boosted their price objective on Old Dominion Freight Line from $170.00 to $185.00 and gave the stock a “buy” rating in a research note on Thursday, January 15th. Deutsche Bank Aktiengesellschaft decreased their price target on Old Dominion Freight Line from $180.00 to $167.00 and set a “buy” rating for the company in a report on Thursday, December 11th. Jefferies Financial Group lifted their price objective on shares of Old Dominion Freight Line from $150.00 to $160.00 and gave the company a “hold” rating in a research note on Friday, December 19th. TD Cowen reissued a “hold” rating on shares of Old Dominion Freight Line in a research report on Friday, January 9th. Finally, Zacks Research lowered shares of Old Dominion Freight Line from a “hold” rating to a “strong sell” rating in a report on Thursday, January 8th. Ten research analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and five have given a Sell rating to the company’s stock. Based on data from MarketBeat.com, Old Dominion Freight Line currently has an average rating of “Hold” and an average price target of $164.67.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in ODFL. Financial Gravity Companies Inc. acquired a new stake in shares of Old Dominion Freight Line in the 2nd quarter valued at about $26,000. E Fund Management Hong Kong Co. Ltd. increased its holdings in Old Dominion Freight Line by 175.7% in the third quarter. E Fund Management Hong Kong Co. Ltd. now owns 193 shares of the transportation company’s stock valued at $27,000 after buying an additional 123 shares during the last quarter. Westside Investment Management Inc. increased its holdings in Old Dominion Freight Line by 100.0% in the third quarter. Westside Investment Management Inc. now owns 196 shares of the transportation company’s stock valued at $27,000 after buying an additional 98 shares during the last quarter. Rossby Financial LCC acquired a new stake in Old Dominion Freight Line during the second quarter valued at approximately $28,000. Finally, Raiffeisen Bank International AG acquired a new stake in Old Dominion Freight Line during the third quarter valued at approximately $37,000. 77.82% of the stock is owned by institutional investors and hedge funds.

Old Dominion Freight Line Trading Up 9.9%

The company has a market cap of $43.61 billion, a P/E ratio of 41.96, a P/E/G ratio of 9.43 and a beta of 1.28. The business has a fifty day simple moving average of $164.01 and a 200 day simple moving average of $151.15. The company has a debt-to-equity ratio of 0.02, a quick ratio of 1.20 and a current ratio of 1.20.

Old Dominion Freight Line Company Profile

Old Dominion Freight Line is a U.S.-based less-than-truckload (LTL) transportation company that provides regional, inter-regional and national freight services. Founded in 1934 and headquartered in Thomasville, North Carolina, the company has grown from a regional carrier into a national freight network, operating a broad system of service centers and terminals to move shipments for shippers of varying sizes and industries.

The company’s core business is LTL trucking, offering scheduled pickup and delivery for palletized freight that does not require a full truckload.