Freight carrier Old Dominion (NASDAQ: ODFL) will be announcing earnings results this Wednesday before market open. Here’s what investors should know.
Old Dominion Freight Line met analysts’ revenue expectations last quarter, reporting revenues of $1.31 billion, down 5.7% year on year. It was a strong quarter for the company, with a decent beat of analysts’ adjusted operating income estimates and a decent beat of analysts’ EBITDA estimates.
Is Old Dominion Freight Line a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Old Dominion Freight Line’s revenue to decline 4.1% year on year, improving from the 5.8% decrease it recorded in the same quarter last year.
Heading into earnings, analysts covering the company have grown increasingly bullish with revenue estimates seeing in majority upward revisions over the last 30 days. Old Dominion Freight Line has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Old Dominion Freight Line’s peers in the ground transportation segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Heartland Express’s revenues decreased 19.7% year on year, beating analysts’ expectations by 2.6%, and Covenant Logistics reported revenues up 14%, topping estimates by 6.9%. Heartland Express traded up 12.5% following the results while Covenant Logistics was also up 9.1%.
Read our full analysis of Heartland Express’s results here and Covenant Logistics’s results here.
There has been positive sentiment among investors in the ground transportation segment, with share prices up 15.1% on average over the last month. Old Dominion Freight Line is up 16.1% during the same time and is heading into earnings with an average analyst price target of $202.63 (compared to the current share price of $220.38).
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