What Happened:

Shares of freight carrier Old Dominion (NASDAQ:ODFL) fell 7% in the morning session after the company provided updated financial forecasts for August 2024. Revenue per day fell 5.2% year on year. This decline was attributed to a 6.1% decrease in LTL tons per day ( the total weight of goods transported), partly offset by an increase in LTL revenue per hundredweight ( meaning the company charged more for each 100 pounds of freight). CEO, Marty Freeman, attributed the revenue decline to the broader softness in the domestic economy and lower fuel surcharge revenue, which affects overall yield.

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What is the market telling us:

Old Dominion Freight Line’s shares are somewhat volatile and over the last year have had 4 moves greater than 5%. In context of that, today’s move is indicating the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The biggest move we wrote about over the last year was about a month ago, when the company gained 7% on the news that the company reported second-quarter earnings results. Old Dominion Freight Line beat analysts' volume and EPS expectations this quarter. On the other hand, its revenue unfortunately missed, showing it had to lower prices. Zooming out, we think this was still a decent, albeit mixed, quarter, showing the company is staying on track.

Old Dominion Freight Line is down 7.4% since the beginning of the year, and at $183.99 per share it is trading 18.1% below its 52-week high of $224.69 from April 2024. Investors who bought $1,000 worth of Old Dominion Freight Line’s shares 5 years ago would now be looking at an investment worth $3,352.

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