Old Dominion Freight Line (ODFL), a major LTL (less-than-truckload) service provider in the US, announced its 4Q17 earnings on February 8, 2018. The company surpassed analysts’ adjusted diluted EPS (earnings per share) estimates of $1.11 by 6.5%. The analysts were surveyed by Thomson Reuters. Old Dominion reported an adjusted EPS of $1.19 in 4Q17. On a year-over-year basis, Old Dominion’s adjusted EPS in 4Q17 rose 43.3% from $0.83 per share in 4Q16.
Stock price reaction
Old Dominion is a major provider of regional, inter-regional, and national LTL services in the US. The company’s services include ground and air expedited logistics as well as consumer household pickup and delivery. In the 4Q17 earnings announcement, the company raised its quarterly cash dividend 30% and raised its budgeted capex for 2018 ~34%. The increases show Old Dominion’s business confidence and ability to return cash to shareowners.
Old Dominion’s stock price on February 8, 2018, tumbled from the previous day’s close of $142.01 and went into a zigzag mode. However, Old Dominion’s stock price recovered the next day. On February 13, 2018, Old Dominion’s stock price closed at $135.60, which was near its 52-week high of $148.66. Notably, Old Dominion has managed to deliver a positive return of 3.1% since January 1, 2018, despite the recent mass sell-off. Let’s compare Old Dominion with peers’ stock price change year-to-date.
- YRC Worldwide (YRCW) – down 29.4%
- XPO Logistics (XPO) – up 0.8%
- SAIA (SAIA) – up 1.1%
- ArcBest (ARCB) – down 7.7%
- FedEx (FDX) – down 3.7%
- United Parcel Service (UPS) – down 9.7%
Investors interested in transportation and logistics stock can consider investing in the SPDR S&P Transportation ETF (XTN). XTN has a 24.2% weight in the trucking industry. Since the beginning of 2018, XTN has fallen 2.6%.
In this series
In this 4Q17 post earnings series on Old Dominion, we’ll discuss its revenue, revenue growth, and operating margins. We’ll also discuss analysts’ recommendations for Old Dominion and its peers.