Old Dominion Freight Line ahead of Q3 results: what the market expects

what happened

Freight carrier Old Dominion Freight Line will publish its third-quarter results on Wednesday before the market opens, StockStory reports.

Last quarter the company beat analyst forecasts for both revenue, which reached $1.55 billion and rose 10.4% year on year, and earnings per share. Revenue is expected to grow 12% year on year, reversing a 4.3% decline in the same quarter a year earlier. Over the past two years, however, the company has missed Wall Street revenue estimates several times.

Peers in transportation and logistics have already reported. Ryder posted revenue growth of 8.3%, beating expectations by 1.2%, while Knight-Swift Transportation rose 14.2%, topping estimates by 1.4%. Ryder shares climbed 12.7% after its release, while Knight-Swift fell 1.1%. Sector stocks have averaged a 4.2% decline over the past month, while ODFL is up 5.3%. The average analyst price target is $221.14, against a current share price of $186.26.

why it matters

Results from a large carrier are often read as a signal about freight demand and the logistics market. ODFL's report could shift sentiment across transportation stocks, which have lagged over the past month. Analysts have mostly reconfirmed their estimates in the last 30 days, suggesting expectations going into the report have not changed much.

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