Old Dominion Freight Line Inc. (ODFL) shares surged 6.7% in pre-market trading on Wednesday, after the company reported better-than-expected fourth-quarter earnings, despite a decline in revenue due to ongoing macroeconomic headwinds.

The trucking company reported earnings per diluted share of $1.23 for the fourth quarter of 2024, surpassing the consensus estimate of $1.16. However, revenue for the quarter fell 7.3% year-over-year to $1.386 billion, slightly missing analysts' expectations of $1.38 billion.

ODFL attributed the revenue decline to an 8.2% drop in LTL tons per day, reflecting the impact of a softer domestic economy on freight demand. The company's operating ratio, a measure of efficiency, increased to 75.9% from 71.8% in the prior-year quarter, primarily due to the deleveraging effect of lower revenue.

Despite the near-term challenges, ODFL demonstrated its yield discipline and operational excellence, maintaining a cargo claims ratio below 0.1% and an on-time service performance of 99% during the quarter. Additionally, the company increased its quarterly cash dividend by 7.7% to $0.28 per share, signaling confidence in its ability to generate long-term profitable growth.

Looking ahead, ODFL expects capital expenditures of approximately $575 million in 2025, focused on expanding its service center network, upgrading its fleet, and enhancing technology. The company remains optimistic about its market position and ability to capitalize on the eventual economic recovery.