Old Dominion Freight Line, Inc.

Old Dominion Freight Line Inc. delivered a mixed set of results for this quarter with revenues below the analyst consensus. However, it managed to exceed the earnings expectations of Wall Street. Considering the operating challenges that are associated with the domestic economy’s continued softness, and decreased volumes, the financial results were solid. The market share of OD remained relatively consistent despite an environment where the overall freight demand was subdued. The linehaul latent load factor decreased. The platform shipments and P&D shipments increased. In the LTL industry, long-term profitability and growth increased. The yield metrics were much affected by a significant decrease in the diesel fuel price as LTL revenue per hundredweight increased. The operating ratio increased due to an increase in overhead costs. Due to the ongoing execution of the company’s capital expenditure plan, the aggregate depreciation expenses of the company increased. We give Old Dominion Freight Line an ‘Underperform’ rating with a revised target price.