Outdated Dominion Freight Line, Inc. (ODFL) has offered an replace on the efficiency of its less-than-truckload (LTL) phase, which is its major income generator, in February.
Outdated Dominion’s income per day fell 5% yr over yr in February 2025, owing to a 7.1% lower in LTL tons per day, which was partially offset by a rise in LTL income per hundredweight. The discount in LTL tons per day was owing to a 5.9% lower in LTL shipments per day and a 1.3% lower in LTL weight per cargo.
Quarter to this point, Outdated Dominion’s LTL income per hundredweight elevated 2.6%, and LTL income per hundredweight, excluding gasoline surcharges, elevated 4.3% yr over yr.
Marty Freeman, president and chief govt officer at Outdated Dominion, acknowledged, “The lower in our February income outcomes displays continued softness within the home financial system in addition to the affect of decrease gasoline costs on our yields. Whereas our income and volumes have been decrease on a year-over-year foundation, demand for our industry-leading service stays robust, and we proceed to be cautiously optimistic concerning the financial system. Because of this, we are going to proceed to deal with delivering superior service at a good value and have the capability to successfully handle incremental development in our enterprise. Our steady execution on these elementary components of our long-term strategic plan has contributed to our historic monitor report for achievement and helps our confidence in producing additional worthwhile income development over the long-term whereas additionally rising shareholder worth.”
ODFL’s Zacks Rank & Value Efficiency
ODFL at present carries a Zacks Rank #3 (Maintain).
Shares of ODFL have plunged 19.7% over the previous yr towards the 33.6% surge of the industry it belongs to.
One-12 months ODFL Inventory Value Comparability
Picture Supply: Zacks Funding Analysis
ODFL is affected by income weak spot as geopolitical uncertainty and excessive inflation proceed to harm shopper sentiment and development expectations. The rise in inflation previously few months exhibits that we’re not but out of the woods so far as inflation is worried. As a result of top-line weak spot and price inflation, the working ratio stays above 70 regardless of ODFL’s cost-cutting initiatives. Additionally, low gasoline surcharge revenues are hurting ODFL’s yields. Partly as a result of these headwinds, shares of ODFL have misplaced over the previous yr. Because of this, the Zacks Consensus Estimate for 2024 earnings has declined over the previous 60 days.
Shares to Take into account
Buyers within the Zacks Transportation sector may additionally take into account United Airways UAL and SkyWest SKYW. Every inventory at present sports activities a Zacks Rank #1 (Robust Purchase). You may see the complete list of today’s Zacks #1 Rank stocks here.
United Airways has an anticipated earnings development charge of 21.11% for the present yr. The Zacks Consensus Estimate for UAL’s 2025 earnings per share has been revised 10.6% upward previously 60 days.
The corporate has an encouraging monitor report with respect to the earnings shock, having surpassed the Zacks Consensus Estimate in every of the trailing 4 quarters. The common beat is 22.93%. Shares of UAL have surged 161.2% previously yr.
SkyWest, based in 1972, is predicated in St. George and operates regional jets for main U.S. airways. SKYW’s monitor report of efficiently assembly the necessities of every of its airline heavyweight companions bodes nicely for the corporate. Revenues from flying agreements (which account for the majority of the highest line) are spectacular owing to SKYW’s above skill. Owing to an uptick in air journey demand, passenger volumes have been upbeat and are more likely to improve going ahead as nicely. That is more likely to hold SKYW’s high line in fine condition.
SKYW has a powerful earnings shock historical past. The corporate’s earnings outpaced the Zacks Consensus Estimate in every of the trailing 4 quarters, delivering a median shock of 16.71%. The Zacks Consensus Estimate for 2025 earnings per share has been revised 7.9% upward previously 60 days.
Zacks Names #1 Semiconductor Inventory
It is only one/9,000th the scale of NVIDIA which skyrocketed greater than +800% since we really helpful it. NVIDIA remains to be robust, however our new high chip inventory has way more room to growth.
With robust earnings development and an increasing buyer base, it is positioned to feed the rampant demand for Synthetic Intelligence, Machine Studying, and Web of Issues. World semiconductor manufacturing is projected to blow up from $452 billion in 2021 to $803 billion by 2028.
See This Stock Now for Free >>
United Airlines Holdings Inc (UAL) : Free Stock Analysis Report
Old Dominion Freight Line, Inc. (ODFL) : Free Stock Analysis Report
SkyWest, Inc. (SKYW) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the creator and don’t essentially mirror these of Nasdaq, Inc.
