Earnings Watch: Old Dominion Earnings Spike 21.4% in Second Quarter
One of the country’s leading LTL carriers, Old Dominion Freight Line scored high in the second quarter, reporting a 21.4% increase in earnings per diluted share to $1.19 on revenue of $839.9 million.
David Cullen・[Former] Business/Washington Contributing Editor
One of the country’s leading LTL carriers, Old Dominion Freight Line (NASDAQ: ODFL) scored high in the second quarter, reporting a 21.4% increase in earnings per diluted share to $1.19 on revenue of $839.9 million. Net income climbed 20.9%, reaching $94.4 million.
The results, reported on July 27, are “likely to encourage investors to send Old Dominion roaring past its 52-week share price high of $100.71 in early trading today,” pointed out analysis posted by the Winston-Salem Journal.
Ad Loading...
The newspaper’s writer contended that ODFL’s record performance “centers on gaining market share through adding and expanding [distribution] centers” since the less-than-truckload carrier “ships products more quickly and attracts more customers because it does not depend on a full trailer to make a profit.”
“Old Dominion produced strong financial results for the second quarter of 2017, which included a double-digit increase in revenue and an increase of more than 20% in earnings per diluted share," said David Congdon, vice chairman and CEO. "These were the best growth rates in revenue and earnings per share since our first quarter of 2015.”
Congdon said Q2’s 11.2% increase in revenue was driven by a 6.1% rise in LTL tonnage per day and a 5.1% increase in LTL revenue per hundredweight. “Excluding fuel surcharges, our LTL revenue per hundredweight increased 3.8%. We believe that the growth in LTL tonnage was attributable to the continued improvement in the domestic economy and the consistent execution of our long-term strategic plan of delivering superior service at a fair price.”
Ad Loading...
In addition, ODFL’s Q2 operating ratio improved 140 basis points to set a new company record of 80.9%. Congdon attributed this improvement generally to leverage created by the carrier’s accelerated revenue growth, which he said benefited from increases in both freight density and yield. “As a result, most of our operating costs improved as a percent of revenue when compared to the second quarter of 2016. “
Congdon noted that ODFL also achieved on-time deliveries in excess of 99% and a cargo claims ratio that improved to a new company record of less than 0.2% in Q2. “With revenue growth continuing into the third quarter, we intend to hire additional employees so that we can continue to deliver superior service and position ourselves to win additional market share," he stated.
In May, the U.S. Supreme Court ruled that freight brokers can be held liable for damages if a truck they have contracted with is involved in an accident.
Transportation attorney breaks down the ruling and its implications for the trucking industry.
The trucking industry has no shortage of cybersecurity reports and cargo crime statistics. What it lacks is timely, operational intelligence that fleets can actually use.
ATRI’s latest research points to litigation, social inflation, and soaring claims costs as key drivers behind record-high liability premiums for trucking fleets. But there are things motor carriers can do.
ATA’s For-Hire Truck Tonnage Index was unchanged in April after a strong March gain, with freight volumes remaining at their highest levels since late 2022.
Transportation attorney Greg Feary breaks down the recent Supreme Court decision that brokers can be held liable for damages in truck accidents and what it means for the trucking industry going forward.
Preliminary net trailer orders rose 3% from March and jumped 126% year over year, signaling stronger-than-expected demand despite typical seasonal softness.
The unanimous SCOTUS ruling in the closely watched Montgomery v. Caribe case allows state negligence claims against freight brokers that hire unsafe motor carriers, raising new liability and vetting concerns among brokers.