Old Dominion Freight Line (NASDAQ:ODFL) Shares Gap Down After Earnings Miss

Key Points

• Old Dominion Freight Line's share price dropped significantly from a closing price of $162.12 to an opening price of $152.50 after their earnings report fell short of expectations, posting a $1.27 EPS compared to the estimated $1.29.
• The company also reported a 6.1% decline in year-over-year revenue, totaling $1.41 billion for the quarter, which is down from the consensus estimate of $1.43 billion.
• A quarterly dividend of $0.28 has been announced, with a yield of 0.75%, reflecting a payout ratio of 21.01% and aimed at supporting investor confidence despite recent earnings volatility.

Old Dominion Freight Line, Inc. (NASDAQ:ODFL - Get Free Report) gapped down before the market opened on Wednesday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $162.12, but opened at $152.50. Old Dominion Freight Line shares last traded at $149.65, with a volume of 686,266 shares traded.

The transportation company reported $1.27 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.29 by ($0.02). The company had revenue of $1.41 billion for the quarter, compared to analyst estimates of $1.43 billion. Old Dominion Freight Line had a return on equity of 25.94% and a net margin of 19.42%. The company's revenue for the quarter was down 6.1% on a year-over-year basis. During the same quarter in the prior year, the firm earned $1.48 earnings per share.

Old Dominion Freight Line Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Wednesday, September 17th. Shareholders of record on Wednesday, September 3rd will be paid a $0.28 dividend. This represents a $1.12 annualized dividend and a yield of 0.8%. The ex-dividend date of this dividend is Wednesday, September 3rd. Old Dominion Freight Line's dividend payout ratio is presently 21.01%.

Analysts Set New Price Targets

ODFL has been the subject of a number of research analyst reports. Stifel Nicolaus dropped their price target on Old Dominion Freight Line from $183.00 to $168.00 and set a "buy" rating for the company in a research note on Thursday. Barclays set a $155.00 price target on Old Dominion Freight Line and gave the company an "equal weight" rating in a report on Thursday. UBS Group decreased their price target on Old Dominion Freight Line from $158.00 to $155.00 and set a "neutral" rating for the company in a research note on Thursday. Susquehanna reduced their price target on Old Dominion Freight Line from $168.00 to $160.00 and set a "neutral" rating for the company in a research report on Wednesday, June 18th. Finally, Citigroup upgraded Old Dominion Freight Line from a "neutral" rating to a "buy" rating and reduced their target price for the company from $186.00 to $183.00 in a research report on Tuesday, April 8th. One analyst has rated the stock with a sell rating, fifteen have issued a hold rating and eight have given a buy rating to the company's stock. According to MarketBeat, Old Dominion Freight Line presently has an average rating of "Hold" and an average target price of $168.38.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently modified their holdings of the business. Envestnet Asset Management Inc. grew its position in Old Dominion Freight Line by 1.2% during the second quarter. Envestnet Asset Management Inc. now owns 422,437 shares of the transportation company's stock valued at $68,561,000 after purchasing an additional 4,956 shares in the last quarter. Chilton Capital Management LLC bought a new stake in Old Dominion Freight Line during the 2nd quarter worth about $47,000. Wealthfront Advisers LLC grew its holdings in Old Dominion Freight Line by 58.8% during the 2nd quarter. Wealthfront Advisers LLC now owns 43,235 shares of the transportation company's stock worth $7,017,000 after acquiring an additional 16,007 shares during the last quarter. Brighton Jones LLC boosted its stake in shares of Old Dominion Freight Line by 10.2% in the 2nd quarter. Brighton Jones LLC now owns 1,713 shares of the transportation company's stock valued at $278,000 after purchasing an additional 159 shares during the last quarter. Finally, Linden Thomas Advisory Services LLC boosted its stake in shares of Old Dominion Freight Line by 2.6% in the 2nd quarter. Linden Thomas Advisory Services LLC now owns 8,970 shares of the transportation company's stock valued at $1,456,000 after purchasing an additional 230 shares during the last quarter. 77.82% of the stock is owned by institutional investors and hedge funds.

Old Dominion Freight Line Stock Down 3.8%

The firm has a market capitalization of $30.35 billion, a price-to-earnings ratio of 28.09, a P/E/G ratio of 2.97 and a beta of 1.25. The business's 50-day moving average is $162.61 and its two-hundred day moving average is $169.02. The company has a debt-to-equity ratio of 0.04, a quick ratio of 1.32 and a current ratio of 1.38.

Old Dominion Freight Line Company Profile

Old Dominion Freight Line, Inc operates as a less-than-truckload motor carrier in the United States and North America. The company offers regional, inter-regional, and national less-than-truckload services, as well as expedited transportation. It also provides various value-added services, including container drayage, truckload brokerage, and supply chain consulting.