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THOMASVILLE, N.C. - Old Dominion Freight Line, Inc. (NASDAQ:ODFL), a $34.45 billion market cap transportation company currently trading near $163 per share, disclosed a decrease in less-than-truckload (LTL) revenue per day for May 2025, falling 5.8% compared to May 2024. According to InvestingPro data, this continues a broader trend, with the company’s revenue declining 2.63% over the last twelve months. This decline was primarily due to an 8.4% reduction in LTL tons per day, which the company attributes to a 6.8% drop in daily LTL shipments and a 1.9% decrease in weight per shipment. Despite these declines, the company noted a 3.2% increase in LTL revenue per hundredweight and a 5.6% rise when excluding fuel surcharges for the quarter-to-date, relative to the same period last year.
Marty Freeman, President and CEO of Old Dominion, stated that the May revenue figures reflect ongoing economic softness and the impact of lower fuel prices on yields. He expressed confidence in the company’s market share stability and commitment to their long-term strategic plan, emphasizing their industry-leading service and yield management initiatives. InvestingPro analysis supports this outlook, highlighting the company’s strong financial health with multiple positive indicators, including robust cash flows and a solid balance sheet with minimal debt.
The company’s forward-looking statements, as outlined in their press release, caution about potential risks and uncertainties that could materially affect actual results. These include challenges in executing growth strategies, customer relationship changes, and various economic factors such as inflation or downturns in the domestic economy. Old Dominion also highlighted the impact of fuel price fluctuations and the ability to collect fuel surcharges, seasonal industry trends, and the availability and cost of equipment and labor.
Old Dominion Freight Line is one of the largest LTL carriers in North America, offering a variety of services including regional, inter-regional, and national LTL services through its extensive service center network across the continental United States. The company also provides value-added services such as container drayage, truckload brokerage, and supply chain consulting. Trading at a P/E ratio of 30.32, the company maintains strong profitability metrics with a 39.75% gross margin and a 20.61% return on assets. For deeper insights into ODFL’s valuation and growth prospects, investors can access comprehensive analysis through InvestingPro’s detailed research reports, which cover over 1,400 top US stocks.
This report is based on a press release statement from Old Dominion Freight Line, Inc.
In other recent news, Old Dominion Freight Line reported its Q1 2025 earnings, with an earnings per share (EPS) of $1.19, surpassing the forecast of $1.16. However, revenue fell slightly short at $1.37 billion, down 5.8% from the previous year. Goldman Sachs upgraded Old Dominion’s stock rating to Buy, raising the price target to $200, citing potential growth and a cyclical recovery in earnings. Conversely, BMO Capital Markets reduced its price target to $175, maintaining a Market Perform rating due to short-term demand challenges. Stephens also adjusted its price target to $180 while keeping an Overweight rating, noting the company’s strong service quality despite demand issues.
Benchmark maintained a Hold rating on Old Dominion, cutting fiscal year estimates in light of a challenging operating environment. The company anticipates a 6% decline in April revenue and a 5% year-over-year decrease for the second quarter, estimating total revenue around $1.4 billion. Old Dominion has reduced its capital expenditures for 2025 to $450 million, down from $575 million, by deferring real estate and equipment spending. Despite these adjustments, management remains optimistic about future growth, supported by robust pricing and market share stability.
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