Old Dominion Q4 Earnings: Strong Pricing Offsets Volume Decline, Dividend Raised 7.7%

Old Dominion Freight Line, Inc. ODFL shares are trading higher following fourth-quarter results.

Here’s a breakdown of what the company reported:

Revenue declined 7.3% year-over-year (Y/Y) to $1.386 billion, beating the consensus of $1.379 billion.
There was an 8.2% decrease in LTL tons per day, a 7.6% drop in LTL shipments per day and a 0.7% reduction in LTL weight per shipment.
LTL revenue per hundredweight, excluding fuel surcharges, rose 3.8% in the quarter.
EPS was $1.23, beating the consensus of $1.18.
Operating income fell 20.7% to $334 million, with an operating ratio of 75.9%, compared to 71.8% a year ago.
Old Dominion's operating cash flow was $401.1 million for the fourth quarter and $1.7 billion for the year.
As of Dec. 31, the company had $108.7 million in cash and equivalents.
Capital expenditures stood at $170.9 million in the quarter.
Roughly $967.3 million was spent on share repurchases, including a $200 million accelerated program, and $223.6 million in dividends.

Dividend Raise: The Old Dominion board declared a first-quarter dividend of $0.28 per share, payable on March 19, 2025, to shareholders on record as of March 5.

Adjusted for the March 2024 stock split, this marks a 7.7% increase from the first quarter of 2024.

Marty Freeman, President and Chief Executive Officer of Old Dominion, commented, “The challenging macroeconomic environment over the past couple of years has created persistent demand headwinds for our business. ”

”…..we are confident that Old Dominion’s unmatched value proposition makes us the best-positioned carrier to win market share once a positive inflection in industry demand occurs.”

Investors can gain exposure to the stock via First Trust S&P 500 Diversified Dividend Aristocrats ETF IYT and Pacer Funds Pacer Industrials and Logistics ETF SHPP.

Price Action: Old Dominion shares are up 7.17% at $196.85 at the last check Wednesday.

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