THOMASVILLE, N.C. — Old Dominion Freight Line Inc. (ODFL) has reported a second-quarter profit of $322 million.
“Old Dominion produced another quarter of profitable growth despite continued softness in the domestic economy,” said Marty Freeman, president and CEO of Old Dominion. “This was our third consecutive quarter with growth in both revenue and earnings per diluted share, and it was the first time in over a year where our earnings increased by double digits. These results were made possible by the dedication of the OD Family of employees, who continue to execute on our long-term strategic plan that is centered on our ability to provide our customers with superior service at a fair price. Consistently delivering best-in-class service also continues to support our yield-management strategy and ongoing ability to win market share.”
On a per-share basis, the Thomasville, North Carolina-based company said it had profit of $1.48.
According to a press release from the company, the results exceeded Wall Street expectations. The average estimate of seven analysts surveyed by Zacks Investment Research was for earnings of $1.45 per share.
All prior-period share and per share data in this release have been adjusted to reflect the Company’s March 2024 two-for-one stock split.
“Our second quarter revenue growth of 6.1% was primarily due to a 4.4% increase in LTL revenue per hundredweight and a 1.9% increase in LTL tons per day,” Freeman said. “The increase in LTL tons per day reflects a 3.1% increase in LTL shipments per day that was partially offset by a 1.2% decrease in weight per shipment. LTL revenue per hundredweight, excluding fuel surcharges, increased 4.9% due primarily to the success of our long-term yield-management strategy. Our consistent, cost-based approach to pricing focuses on offsetting our cost inflation while also supporting further investments in the capacity and technology that our customers expect.”
The trucking company posted revenue of $1.5 billion in the period, which met Street forecasts.
“Our operating ratio improved 40 basis points to 71.9% for the second quarter of 2024, due primarily to the quality of our revenue growth and continued focus on operating efficiencies,” Freeman said. “These factors allowed us to improve our direct operating costs as a percent of revenue, which more than offset the increase in our overhead expenses as a percent of revenue. The combination of the growth in revenue and operating ratio improvement resulted in the 11.3% increase in earnings per diluted share to $1.48 for the second quarter.”
According to the release, Old Dominion’s net cash provided by operating activities was $387.8 million for the second quarter of 2024 and $811.7 million for the first half of the year. The Company had $74.3 million in cash and cash equivalents as of June 30.
Capital expenditures were $238.1 million for the second quarter of 2024 and $357.6 million for the first half of the year. The company expects its aggregate capital expenditures for 2024 to total approximately $750 million, including planned expenditures of $350 million for real estate and service center expansion projects; $325 million for tractors and trailers; and $75 million for information technology and other assets.
Old Dominion continued to return capital to shareholders during the second quarter of 2024 through its share repurchase and dividend programs, according to the release. For the first six months of this year, the Company utilized $637.1 million of cash for its share repurchase program, including a $200.0 million accelerated share repurchase agreement that will expire no later than November 2024, and paid $112.6 million in cash dividends.
Dana Guthrie is an award-winning journalist who has been featured in multiple newspapers, books and magazines across the globe. She is currently based in the Atlanta, Georgia, area.
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