THOMASVILLE, N.C. - Old Dominion Freight Line, Inc. (NASDAQ:ODFL) reported third quarter earnings that slightly beat analyst estimates, though revenue declined YoY amid softening demand.
The less-than-truckload carrier posted earnings per share of $1.43, edging past the consensus estimate of $1.42. However, revenue fell 3% YoY to $1.47 billion, missing expectations of $1.49 billion.
Old Dominion cited "ongoing softness in the domestic economy" for the challenging operating environment. LTL tons per day decreased 4.8% compared to Q3 2023, reflecting a 3.4% drop in LTL shipments per day and a 1.4% decrease in LTL weight per shipment.
"The challenging operating environment, and strong comparable results for the third quarter of 2023, resulted in the first year-over-year decrease in our quarterly revenue and earnings per diluted share this year," said Marty Freeman, President and CEO.
The company's operating ratio increased 210 basis points to 72.7% in Q3. Net income fell 9.1% to $308.6 million.
Despite the headwinds, Old Dominion maintained its focus on pricing discipline, with LTL revenue per hundredweight excluding fuel surcharges rising 4.6% YoY.
Freeman emphasized the company's continued execution of its long-term strategic plan centered on delivering superior service, which he believes will drive market share gains and shareholder value over time.
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