Why Old Dominion Freight Line (ODFL) Stock Is Falling Today

What Happened?

Shares of freight carrier Old Dominion (NASDAQ:ODFL) fell 8.7% in the afternoon session after the company reported second-quarter earnings and revenue that missed Wall Street expectations. 

The trucking company posted revenue of $1.41 billion, down 6.1% from the previous year and just below analysts' forecasts of $1.42 billion. Earnings per share came in at $1.27, which also fell short of the $1.29 Wall Street had expected. Company management pointed to the ongoing "softness in the domestic economy" and a "prolonged freight downturn" as the primary reasons for the disappointing results. The weaker performance occurred amid a challenging macroeconomic backdrop for the logistics industry, which weighed on investor sentiment.

The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Old Dominion Freight Line? Access our full analysis report here, it’s free.

What Is The Market Telling Us

Old Dominion Freight Line’s shares are somewhat volatile and have had 11 moves greater than 5% over the last year. In that context, today’s move indicates 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 3 months ago when the stock dropped 8.7% on the news that the company reported underwhelming first-quarter 2025 results, as a drop in revenue and earnings weighed on investor sentiment. Revenue fell nearly 6% year on year, driven by a decline in tonnage and shipment counts. Overall, this was a weaker quarter.

Old Dominion Freight Line is down 15.6% since the beginning of the year, and at $148.25 per share, it is trading 36.1% below its 52-week high of $231.84 from November 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 $1,645.

Unless you’ve been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. While Nvidia and AMD are trading close to all-time highs, we prefer a lesser-known (but still profitable) semiconductor stock benefiting from the rise of AI. Click here to access our free report on our favorite semiconductor growth story.