Old Dominion Freight Line Inc. Reports Second-Quarter Profit above Expectations
Old Dominion Freight Line Inc. (ODFL) announced its second-quarter financial results today, with higher-than-expected profits despite a decline in revenue. The company experienced weakness in the number of tons carried in its trucks per day and trucking rates. Additionally, Old Dominion Freight Line revealed a new $3 billion stock repurchase program, adding to the existing $376.9 million remaining from the previous program.
Financial Performance
Net income for the second quarter fell to $292.4 million, or $2.65 per share, compared to $376.1 million, or $3.30 per share, in the same period last year. However, this still surpassed the FactSet consensus estimate of $2.63 per share. Revenue declined by 15.2% to $1.41 billion, below the FactSet consensus of $1.44 billion. Notably, the company experienced a 14.1% drop in less-than-truckload (LTL) tons per day, and LTL revenue per hundredweight declined by 1.1%.
Market Impact and Outlook
Old Dominion Freight Line's stock remains inactive in the premarket, while it has seen a significant increase of 29.4% over the past three months. Comparatively, the S&P 500 has gained 12.6% during the same period. Despite the challenging domestic economic conditions that contributed to the decline in volumes and total revenue, Chief Executive Marty Freeman expressed confidence in the company's ability to navigate these ongoing challenges.
With the new stock repurchase program and its continued efforts to deliver exceptional service and value to its customers, Old Dominion Freight Line is determined to maintain its position as a leading player in the trucking industry.
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