Old Dominion Freight Line Beats Estimates on Top and Bottom Lines

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Old Dominion Freight Line (NAS: ODFL) reported earnings on Feb. 2. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Old Dominion Freight Line beat slightly on revenue and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue increased significantly and GAAP earnings per share expanded significantly.

Margins expanded across the board.

Revenue details
Old Dominion Freight Line recorded revenue of $485.1 million. The 13 analysts polled by S&P Capital IQ expected to see net sales of $479.8 million. Sales were 22% higher than the prior-year quarter's $399.0 million.


Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.

EPS details
EPS came in at $0.69. The 17 earnings estimates compiled by S&P Capital IQ averaged $0.57 per share. GAAP EPS of $0.69 for Q4 were 77% higher than the prior-year quarter's $0.39 per share.


Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 77.5%, 5,390 basis points better than the prior-year quarter. Operating margin was 13.1%, 360 basis points better than the prior-year quarter. Net margin was 8.2%, 270 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $487.5 million. On the bottom line, the average EPS estimate is $0.48.

Next year's average estimate for revenue is $2.10 billion. The average EPS estimate is $2.64.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 104 members out of 122 rating the stock outperform, and 18 members rating it underperform. Among 48 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 41 give Old Dominion Freight Line a green thumbs-up, and seven give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Old Dominion Freight Line is outperform, with an average price target of $44.40.

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At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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