Old Dominion Freight Line, Inc. (ODFL) has provided an update on the performance of its less-than-truckload (LTL) segment, which is its primary revenue generator, in November.

Old Dominion's revenue per day fell 8.2% year over year in November 2024, owing to an 8% decrease in LTL tons per day and a slight decrease in LTL revenue per hundredweight. The decrease in LTL tons per day was due to a 6.8% decrease in LTL shipments per day and a 1.2% decrease in LTL weight per shipment.

Quarter to date, Old Dominion’s LTL revenue per hundredweight decreased 1.2%, and LTL revenue per hundredweight, excluding fuel surcharges, increased 3.7% year over year.

Marty Freeman, president and chief executive officer at Old Dominion, stated, “Our revenue results for November reflect the continued softness in the domestic economy as well as the impact of lower fuel surcharge revenue on our yields. While our LTL volumes declined on a year-over-year basis in November, the improvement in our revenue per hundredweight, excluding fuel surcharges, demonstrates our continued commitment to yield management. We have achieved consistent, cost-based increases in our yield metrics, excluding fuel surcharges, by remaining committed to providing our customers with superior service at a fair price. As we continue to deliver on these core elements of our long-term strategic plan, we remain confident in our ability to win market share and increase shareholder value over the long term.”

ODFL’s Zacks Rank & Price Performance

ODFL currently carries a Zacks Rank #4 (Sell).

Shares of ODFL have gained 7.9% so far this year, underperforming its 11.5% growth of the industry it belongs to.

YTD Price-Comparison

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ODFL is currently suffering from revenue weakness as geopolitical uncertainty and high inflation continue to hurt consumer sentiment and growth expectations. The higher-than-expected CPI reading for September shows that we are not yet out of the woods as far as inflation is concerned. Due to top-line weakness and cost inflation, the operating ratio remains above 70 despite ODFL's cost-cutting initiatives. Also, low fuel surcharge revenues are hurting ODFL’s yields. Partly due to these headwinds, shares of ODFL have underperformed its industry in the past three months. As a result, the Zacks Consensus Estimate for 2024 earnings have declined over the past 60 days.

Stocks to Consider

Some better-ranked stocks from the Zacks Transportation sector are Expeditors International of Washington, Inc. (EXPD) and Wabtec Corporation WAB. Each stock presently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

EXPD has an impressive earnings surprise history. The company's earnings outpaced the Zacks Consensus Estimate in two of the trailing four quarters (missed the mark in the remaining quarter and met in the other quarter), delivering an average surprise of 4.75%.

The Zacks Consensus Estimate for EXPD’s 2024 earnings has been revised 6.4% upward over the past 90 days. EXPD has an expected earnings growth rate of 8.38% for 2024. Shares of EXPD have lost 4.5% so far this year.

WAB has an impressive earnings surprise history. The company's earnings outpaced the Zacks Consensus Estimate in three of the trailing four quarters (missed the mark in the remaining quarter), delivering an average surprise of 9.46%.

The Zacks Consensus Estimate for WAB’s 2024 earnings has been revised 2.5% upward over the past 90 days. WAB has an expected earnings growth rate of 28.55% for 2024. Shares of WAB have gained 57.4% so far this year.

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