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

Old Dominion's revenue per day fell 5.2% year over year in August 2024, owing to a 6.1% decrease in LTL tons per day, which was partially offset by an increase in LTL revenue per hundredweight. The change in LTL tons per day was due to a 5% decrease in LTL shipments per day and a 1.1% decrease in LTL weight per shipment.

Quarter to date, Old Dominion’s LTL revenue per hundredweight and LTL revenue per hundredweight, excluding fuel surcharges, jumped 3% and 4.9%, year over year, respectively.

Marty Freeman, president and chief executive officer of Old Dominion, stated, "Our revenue results for August reflect continued softness in the domestic economy as well as the impact of lower fuel surcharge revenue on our yields. While our LTL volumes declined on a year-over-year basis, our LTL shipments per day in August were relatively consistent with July and our year-to-date average through the first half of this year. We also maintained our long-term, disciplined approach to pricing, which is reflected in the ongoing improvement in our LTL revenue per hundredweight. The OD Family of employees remains focused on delivering superior service at a fair price to our customers, which has created an unmatched value proposition in our industry. We believe that by continuing to execute our long-term strategic plan, we are positioning Old Dominion to win profitable market share over the long-term while also increasing shareholder value.”

ODFL’s Zacks Rank & Price Performance

ODFL currently carries a Zacks Rank #4 (Sell).

Shares of ODFL have lost 7.7% over the past year compared with a 3.3% decline of the industry it belongs to.

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While Old Dominion is being hurt by reduced demand for freight services, this underperformance is not surprising. High inflation and decreased manufacturing activity are also major challenges, as they are hurting consumer spending and industrial demand. The negative sentiment surrounding the stock is evident from the fact that the Zacks Consensus Estimate for the current quarter and current-year earnings has been revised downward over the last 90 days.

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Stocks to Consider

Some better-ranked stocks from the Zacks Transportation sector are C.H. Robinson Worldwide (CHRW) and Wabtec Corporation WAB. Each stock presently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

CHRW has an impressive earnings surprise history. The company's earnings outpaced the Zacks Consensus Estimate in three of the trailing four quarters (missed the mark in the remaining quarter), delivering an average surprise of 7.33%.

CHRW has an expected earnings growth rate of 22.42% for 2024. The Zacks Consensus Estimate for CHRW 2024 earnings has been revised 11.3% upward over the past 90 days. Shares of CHRW have gained 14.3% so far this year.

WAB has an impressive earnings surprise history. The company's earnings outpaced the Zacks Consensus Estimate in three of the trailing four quarters (missed the mark in the remaining quarter), delivering an average surprise of 11.83%.

The Zacks Consensus Estimate for WAB’s 2024 earnings has been revised 3.3% upward over the past 90 days. WAB has an expected earnings growth rate of 25.34% for 2024. Shares of WAB have gained 23.5% so far this year.

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