Old Dominion Freight Expected to Report Declining Earnings

Old Dominion Freight Line is set to report its Q4 earnings with expectations of a profit decline. Investors remain cautious as the company's performance is affected by weak freight demand and lower sales volumes.

Date: 08-01-2025

AI Rating: 5

Earnings Per Share (EPS)
Analysts predict that Old Dominion will report an EPS of $1.17 for the fourth quarter, down 20.4% from $1.47 in the same quarter last year. The anticipated EPS for fiscal 2024 is also lower at $5.42, a 3.7% decline from the previous fiscal year. However, there is an optimistic projection of a rebound in EPS for fiscal 2025, with an expected increase of 9% to $5.91.

Revenue Growth
The company reported Q3 revenue of $1.47 billion, which fell short of analysts’ expectations of $1.49 billion by 1.3%, indicating potential revenue challenges ahead. This drop can contribute to negative investor sentiment, as revenue is pivotal for evaluating company stability.

Free Cash Flow (FCF)
Despite the revenue shortfall, Old Dominion did experience an improvement in its free cash flow margin, which rose to 46.9% from 17.3% in the previous year. This indicates stronger cash management and could appease some investors.

Market Performance
Old Dominion’s shares have decreased by 4.8% over the past year, contrasting sharply with the S&P 500 and the Industrial Select Sector SPDR Fund performances. This underperformance can raise alarms among investors, suggesting a disconnect between the company’s operational results and market expectations.

Overall Outlook
The overall consensus among analysts remains cautious, with a majority recommending a “Hold” rating. The average price target of $204.31 indicates a potential upside, but with anticipated declines in EPS and revenue growth projections, investor sentiment may be challenged in the forthcoming earnings report.

Stocks: ODFL