Old Dominion Stock Dips After Q2 Earnings & Revenues Miss Estimates

Old Dominion Freight Line, Inc. (ODFL) reported disappointing second-quarter 2025 results wherein the company’s earnings and revenues missed the Zacks Consensus Estimate and fell on a year-over-year basis.

Quarterly earnings per share of $1.27 missed the Zacks Consensus Estimate of $1.29 and dipped 14.2% year over year. Revenues of $1.41 billion lagged the Zacks Consensus Estimate of $1.42 billion and decreased 6.1% year over year.

The downside in ODFL’s second-quarter revenues was owing to a 9.3% decrease in its LTL tons per day, which was partially offset by an increase in LTL revenue per hundredweight. The decrease in LTL tons per day reflects a 7.3% decrease in LTL shipments per day and a 2.1% decrease in LTL weight per shipment.

LTL revenue per hundredweight, excluding fuel surcharges, grew 5.3% year over year, reflecting ODFL’s consistent approach to yield management.

The earnings and revenues miss, coupled with a year-over-year decline, have displeased investors. As a result, ODFL stock was down in early trading.

Old Dominion Freight Line, Inc. Price, Consensus and EPS Surprise

Old Dominion Freight Line, Inc. price-consensus-eps-surprise-chart | Old Dominion Freight Line, Inc. Quote

Marty Freeman, president and chief executive officer at ODFL, stated, “Old Dominion’s financial results in the second quarter reflect the ongoing softness in the domestic economy. While the challenging macroeconomic backdrop created demand headwinds for our business during the quarter, our market share remained relatively consistent and our team continued to execute on our long-term strategic plan. The cornerstone of our plan remains our commitment to creating an unmatched value proposition for our customers by providing them with superior service at a fair price. As a result, we were pleased to once again achieve an on-time service performance of 99% and a cargo claims ratio of 0.1%.”

Other Aspects of Q2 Earnings Report

Revenues from LTL services came in at $1.39 billion (down 6.1% year over year), which was below our estimate of $1.41 billion. Revenues from other services fell 8.1% year over year to $12.61 million, which was below our projection of $16.5 million.

In the quarter under review, LTL weight per shipment dipped 2.1%, and LTL revenue per shipment inched up 1.2% year over year. LTL shipments and LTL shipments per day were both down 7.3%  on a year-over-year basis. LTL revenue per hundredweight increased 3.4%.

Total operating expenses declined 2.5% year over year to $1.05 billion. The operating income decreased 15.1% year over year to $357.89 million.

Old Dominion exited the June-end quarter with cash and cash equivalents of $24.05 million compared with $97.19 million at the end of the prior quarter. Long-term debt at the end of the second quarter was $149.99 million compared with $39.99 million at the first quarter of 2025-end.

During the first half of 2025, ODFL paid out dividends worth $118.5 million and repurchased shares worth $424.6 million.  

ODFL generated $285.9 million of net cash from operating activities during the second quarter of 2025. Capital expenditures were $187.2 million during the reported quarter.

For 2025, ODFL continues to anticipate its aggregate capital expenditures to be around $450 million, which includes planned expenditures of $210 million for real estate and service center expansion projects; $190 million for tractors and trailers; and $50 million for information technology and other assets.

Currently, ODFL carries a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Q2 Performances of Other Transportation Companies

Delta Air Lines (DAL) reported second-quarter 2025 earnings (excluding $1.17 per share from non-recurring items) of $2.10 per share, which beat the Zacks Consensus Estimate of $2.04. Earnings decreased 11% on a year-over-year basis due to high labor costs.

Revenues in the June-end quarter were $16.65 billion, beating the Zacks Consensus Estimate of $16.2 billion and decreasing marginally on a year-over-year basis. Adjusted operating revenues (excluding third-party refinery sales) increased 1% year over year to $15.5 billion. 

J.B. Hunt Transport Services, Inc. (JBHT) reported second-quarter 2025 earnings of $1.31 per share, which missed the Zacks Consensus Estimate of $1.34 and declined 0.8% year over year.

Total operating revenues of $2.93 billion missed the Zacks Consensus Estimate of $2.94 billion and were flat year over year. JBHT’s second-quarter revenue performance witnessed a 6% increase in Intermodal (JBI) loads, a 13% increase in Truckload (JBT) loads, a 3% increase in Dedicated Contract Services (DCS) productivity and a 6% increase in Integrated Capacity Solutions (ICS) revenue per load. These items were offset by Final Mile Services revenue declining 10%, lower revenue per load in both JBI and JBT, a 9% decrease in ICS load volume and a 3% decline in average trucks in DCS. Total operating revenues, excluding fuel surcharge revenue, increased 1% on a year-over-year basis.

United Airlines Holdings, Inc. (UAL) reported mixed second-quarter 2025 results wherein the company’s earnings beat the Zacks Consensus Estimate, but revenues missed the same.

UAL's second-quarter 2025 adjusted earnings per share of $3.87 surpassed the Zacks Consensus Estimate by a penny but declined 6.5% on a year-over-year basis. The reported figure lies within the guided range of $3.25-$4.25.

Operating revenues of $15.2 billion fell short of the Zacks Consensus Estimate of $15.4 billion but increased 1.7% year over year. Passenger revenues (which accounted for 90.8% of the top line) increased 1.1% year over year to $13.8 billion. UAL flights transported 46,186 passengers in the second quarter, up 4.1% year over year.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research