Old Dominion (ODFL) To Report Q4 Earnings: What's In Store?
Zacks Investment Research | Jan 30, 2020 09:08PM ET
Old Dominion Freight Line (NASDAQ:ODFL) , which joined the coveted S&P 500 Index on Dec 9, 2019, is scheduled to report fourth-quarter 2019 results on Feb 6, before market open.
The Zacks Consensus Estimate for fourth-quarter 2019 earnings has been revised downward 4.8% in the past 60 days. Given this backdrop, let’s delve into the factors that might have influenced the company’s performance in the quarter.
Old Dominion’s quarterly performance is likely to have been dented by a decline in LTL (Less-Than-Truckload) tonnage due to a soft freight environment. The Zacks Consensus Estimate for fourth-quarter LTL tonnage per day hints at a 2% decline from the figure reported for the July-September period. LTL shipments are also likely to have declined during the December-end period due to soft freight demand.
Another key metric — operating ratio (operating expenses as a percentage of revenues) — is likely to have suffered mainly due to lackluster revenues. The Zacks Consensus Estimate for fourth-quarter operating ratio is pegged at 81%, higher than the 79% reported for the September-end quarter. Notably, lower the value the better. High capital expenditures are also likely to have eroded the bottom line for the soon-to-be-reported quarter.
However, LTL revenue per hundredweight is likely to have increased in the fourth quarter partly owing to favorable pricing in the October-December period. The Zacks Consensus Estimate for fourth-quarter LTL revenue per hundredweight hints at an almost 1% improvement from the figure reported for the third quarter.
Old Dominion Freight Line, Inc. Price and EPS Surprise
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