Old Dominion Posts Third Straight Quarter of Revenue Growth
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Old Dominion Freight Line marked its third consecutive quarter of year-over-year revenue growth during the second quarter of 2024, the company reported July 24.
The Thomasville, N.C.-based less-than-truckload carrier posted net income of $322.1 million, or $1.48 a diluted share, for the three months ending June 30. That compared with $292.4 million, $1.33, during the same time the previous year. Total revenue increased 6.1% to $1.5 billion from $1.41 billion.
Old Dominion Freight Line ranks No. 8 on the Transport Topics Top 100 list of the largest for-hire carriers in North America and No. 2 on the LTL list.
“Old Dominion second-quarter results represent our third-consecutive quarter with year-over-year growth in revenue and earnings per diluted share, despite the ongoing sluggishness in the domestic economy,” President Marty Freeman said during a call with investors. “These results were made possible by the hard work and dedication of the OD family of employees who continue to execute our long-term strategic plan during the second quarter.”
ODFL said that its main less-than-truckload services saw revenue growth of 6.2% to $1.49 billion from $1.4 billion during the same time last year. LTL shipments per day increased 3.1% to 48,444 from 46,998, while revenue per shipment grew 3.2% to $479.48 from $464.79.
“I’m pleased to report that during the second quarter, we once again provided an on-time service level of 99% and a cargo claims ratio of 0.1%,” Freeman said. “Constantly delivering the level of service for our customers, regardless of the economic cycle, has strengthened our customer relationships over time. We help our customers keep their promises they have made to their customers by delivering their freight on time and damage free.”
The results were close to expectations by investment analysts on Wall Street, who had been looking for $1.45 per share and quarterly revenue of $1.5 billion, according to Zacks Consensus Estimate.
“Our long-term yield management strategy is designed to help offset our cost inflation while also supporting further investment in the capacity and technology that our customers expect,” Freeman said. “We have been one of the only LTL carriers to constantly and consistently invest in new capacity over the past 10 years, which has supported our ability to almost double our market share over the same period. We are committed to constantly investing ahead of our anticipated growth curve.”
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