Shares of Old Dominion Freight Lines (NASDAQ:ODFL) tanked today after it reported earnings for its first quarter of Fiscal Year 2023. Earnings per share came in at $2.58, which missed analysts’ consensus estimate of $2.70 per share. Sales decreased by 4% year-over-year, with revenue hitting $1.44 billion. This was $40 million below expectations.
Don't Miss our Black Friday Offers:
- Unlock your investing potential with TipRanks Premium - Now At 40% OFF!
- Make smarter investments with weekly expert stock picks from the Smart Investor Newsletter
Old Dominion experienced a decline in LTL revenue during the first quarter, with daily LTL tonnage dropping 11.9% and the segment’s operating ratio deteriorating by 80 basis points. CEO Greg Gantt cited a weak domestic economy and tough operating conditions for the company’s first revenue and earnings decrease in more than two and a half years.
However, Gantt highlighted that Old Dominion’s market share stayed fairly stable despite the overall industry downturn. He mentioned that although the company succeeded in lowering direct costs relative to revenue, this was counterbalanced by increased fixed overhead costs, depreciation, and certain operating expenses linked to long-term investments in service centers and equipment capacity.
Turning to Wall Street, analysts have a consensus price target of $352.88 on ODFL stock, implying over 14% upside potential, as indicated by the graphic above.
