Old Dominion Freight Line price target lowered to $160 by BofA Securities

Investing.com - BofA Securities has reduced its price target on Old Dominion Freight Line (NASDAQ:ODFL) to $160.00 from $171.00 while maintaining a Neutral rating on the stock. The stock, currently trading near its 52-week low of $144.90, has seen 8 analysts revise their earnings expectations downward for the upcoming period, according to InvestingPro data.

The freight carrier reported second-quarter earnings per share of $1.27, representing a 15% year-over-year decline and falling slightly below analyst expectations of $1.29. Operating income reached $358 million, missing BofA’s target by $3 million or $0.01 per share. Despite recent headwinds, InvestingPro analysis shows the company maintains strong profitability with a 27% return on equity and an impressive Financial Health Score of "GOOD."

Management indicated that third-quarter operating ratio would deteriorate by 80-120 basis points sequentially, which is worse than the normal flat to 50 basis points deterioration typically seen. This decline is attributed to negative operating leverage, higher fringe benefit costs, and ongoing losses on used truck sales.

CEO Marty Freeman stated that the company remains well-positioned for an economic upturn and denied relative market share loss despite experiencing larger tonnage-per-day declines compared to public peers. BofA noted, however, that the company’s long-term market share data shows slight share losses in five of six U.S. regions.

Old Dominion continues to prioritize pricing discipline to protect margins and maintain its industry-leading 99% on-time service performance and 0.1% cargo claims ratio, even as competitors aggressively pursue volume growth. The company’s strong financial position is evidenced by its healthy balance sheet, with more cash than debt, according to InvestingPro data, positioning it well to maintain its competitive advantage.

In other recent news, Old Dominion Freight Line Inc . disclosed its financial results for the second quarter of 2025, which fell short of analysts’ expectations. The company reported earnings per share of $1.27, slightly below the anticipated $1.29. Revenue also missed forecasts, coming in at $1.41 billion compared to the expected $1.42 billion. These recent developments in earnings and revenue figures are crucial for investors to consider. The earnings report led to a notable pre-market stock price decline, though specific stock price movements are not the focus here. While the company’s financial performance did not meet projections, these results are part of a broader set of recent developments affecting the company. Investors and analysts will be closely monitoring how Old Dominion navigates these challenges moving forward.

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