Old Dominion stock sinks to 3-month low after profit misses expectations the first time in 3 years

Shares of Old Dominion Freight Line Inc. (ODFL) sank 5.1% toward a three-month low Wednesday, enough to pace the Dow Jones Transportation Average's premarket decliners, after the trucking company missed quarterly profit expectations for the first time in three years, while revenue missed for a third-straight quarter. "Old Dominion's first quarter financial results reflect continued softness in the domestic economy and a challenging operating environment," said Chief Executive Greg Gantt. "The resulting decrease in our volumes contributed to our first decline in quarterly revenue and earnings per diluted share in over two and a half years." First-quarter net income fell to $285.0 million, or $2.58 a share, from $299.8 million, or $2.60 a share, in the year-ago period, to miss the FactSet consensus of $2.70. The last time the company missed earnings-per-share expectations was the first quarter of 2020. Revenue declined 3.7% to $1.44 billion, below the FactSet consensus of $1.48 billion. Less-than-truckload (LTL) shipments per day fell 9.6% and LTL weight per shipment was down 2.5%. The stock has soared 19.6% year to date through Tuesday, while the Dow transports have gained 4.1% and the Dow Jones Industrial Average has edged up 1.2%.

-Tomi Kilgore

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04-26-23 0910ET

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