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Old Dominion Posts Weak LTL Unit Performance for February

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Old Dominion Freight Line, Inc. (ODFL - Free Report) has provided an update on the performance of its less-than-truckload (LTL) segment, which is its primary revenue generator, in February.

Old Dominion's revenue per day fell 5% year over year in February 2025, owing to a 7.1% decrease in LTL tons per day, which was partially offset by an increase in LTL revenue per hundredweight. The reduction in LTL tons per day was owing to a 5.9% decrease in LTL shipments per day and a 1.3% decrease in LTL weight per shipment.

Quarter to date, Old Dominion’s LTL revenue per hundredweight increased 2.6%, and LTL revenue per hundredweight, excluding fuel surcharges, increased 4.3% year over year.

Marty Freeman, president and chief executive officer at Old Dominion, stated, “The decrease in our February revenue results reflects continued softness in the domestic economy as well as the impact of lower fuel prices on our yields. While our revenue and volumes were lower on a year-over-year basis, demand for our industry-leading service remains strong, and we continue to be cautiously optimistic about the economy. As a result, we will continue to focus on delivering superior service at a fair price and have the capacity to effectively manage incremental growth in our business. Our continuous execution on these fundamental elements of our long-term strategic plan has contributed to our historical track record for success and supports our confidence in producing further profitable revenue growth over the long-term while also increasing shareholder value.”

ODFL’s Zacks Rank & Price Performance

ODFL currently carries a Zacks Rank #3 (Hold).

Shares of ODFL have plunged 19.7% over the past year against the 33.6% surge of the industry it belongs to.

One-Year ODFL Stock Price Comparison

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ODFL is suffering from revenue weakness as geopolitical uncertainty and high inflation continue to hurt consumer sentiment and growth expectations. The increase in inflation in the past few months shows that we are not yet out of the woods as far as inflation is concerned. Due to the top-line weakness and cost inflation, the operating ratio remains above 70 despite ODFL's cost-cutting initiatives. Also, low fuel surcharge revenues are hurting ODFL’s yields. Partly due to these headwinds, shares of ODFL have lost over the past year. As a result, the Zacks Consensus Estimate for 2024 earnings has declined over the past 60 days.

Stocks to Consider

Investors interested in the Zacks Transportation sector may also consider United Airlines (UAL - Free Report) and SkyWest (SKYW - Free Report) . Each stock currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

United Airlines has an expected earnings growth rate of 21.11% for the current year. The Zacks Consensus Estimate for UAL’s 2025 earnings per share has been revised 10.6% upward in the past 60 days.

The company has an encouraging track record with respect to the earnings surprise, having surpassed the Zacks Consensus Estimate in each of the trailing four quarters. The average beat is 22.93%. Shares of UAL have surged 161.2% in the past year.

SkyWest, founded in 1972, is based in St. George and operates regional jets for major U.S. airlines. SKYW’s track record of successfully meeting the requirements of each of its airline heavyweight partners bodes well for the company. Revenues from flying agreements (which account for the bulk of the top line) are impressive owing to SKYW’s above ability. Owing to an uptick in air travel demand, passenger volumes have been upbeat and are likely to increase going forward as well. This is likely to keep SKYW's top line in good shape.

SKYW has an impressive earnings surprise history. The company's earnings outpaced the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average surprise of 16.71%. The Zacks Consensus Estimate for 2025 earnings per share has been revised 7.9% upward in the past 60 days.


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