THOMASVILLE, N.C. - Old Dominion Freight Line, Inc. (NASDAQ:ODFL) today reported its financial results for the first quarter ended March 31, 2024.
The company announced earnings per share (EPS) of $1.34, aligning with analysts' expectations. However, revenue for the quarter was slightly below the consensus estimate, coming in at $1.46 billion against an anticipated $1.47 billion. The stock saw a marginal decline of 0.06% following the earnings release, indicating a relatively muted market response to the company's performance.
The first quarter results demonstrated resilience despite a challenging economic environment. Revenue saw a modest year-over-year (YoY) increase of 1.2%, while the less-than-truckload (LTL) services revenue grew by 1.6%. Despite a decrease in other services revenue by 24.9%, Old Dominion maintained a steady operating income with a 0.9% YoY increase. The company's net income also rose by 2.5% compared to the same period last year.
Marty Freeman, President and CEO of Old Dominion, attributed the steady results to the company's strategic plan and commitment to providing high-quality service. He noted, "For the second straight quarter, both our revenue and earnings per diluted share increased on a year-over-year basis. We achieved these results by continuing to execute our long-term strategic plan, which is centered on our ability to provide our customers with superior service at a fair price."
Old Dominion also reported an increase in LTL revenue per hundredweight by 4.1%, while LTL tons per day decreased by 3.2%. Excluding fuel surcharges, LTL revenue per hundredweight saw a 6.7% improvement, reflecting the company's focus on revenue quality and pricing strategy. The operating ratio inched up 10 basis points to 73.5% compared to the first quarter of 2023.
The company's capital expenditure plans for 2024 are set to total approximately $750 million, with investments in real estate, service center expansion, and technology. Old Dominion also continued its shareholder return programs, with $85.3 million allocated to share repurchases and $56.6 million to cash dividends in the first quarter.
Freeman concluded with confidence in the company's future, stating, "With our best-in-class value proposition and customer relationships that have continued to strengthen, we believe we are well-positioned to respond to a positive inflection in demand."
Old Dominion Freight Line remains committed to its growth strategy and enhancing shareholder value, navigating through the economic cycles with a focus on operational efficiency and strategic investments.
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