Old Dominion Freight Line Reports Mixed Q3 Results, Decline in Quarterly Revenue and Net Income

Old Dominion Freight Line, Inc. reported its financial results for the third quarter and the first nine months of 2024, highlighting a mixed performance in revenue and profitability compared to the previous fiscal period. For the three months ended September 30, 2024, the company generated revenue from operations of $1,470,211 (in thousands), a decrease of 3.0% from $1,515,277 (in thousands) in Q3 2023. However, for the nine months ended September 30, 2024, total revenue increased by 1.3% to $4,428,981 (in thousands) from $4,370,602 (in thousands) in the same period of 2023.

Operating income for Q3 2024 was $401,861 (in thousands), down from $445,019 (in thousands) in Q3 2023, reflecting a decline in operating margin from 29.4% to 27.3%. Net income for the third quarter also fell by 9.1% to $308,580 (in thousands) compared to $339,287 (in thousands) in the prior year. In contrast, net income for the first nine months of 2024 rose slightly by 0.7% to $922,929 (in thousands) from $916,687 (in thousands) in 2023.

The company’s total operating expenses for Q3 2024 were $1,068,350 (in thousands), a marginal decrease from $1,070,258 (in thousands) in Q3 2023. For the nine-month period, operating expenses increased to $3,219,003 (in thousands) from $3,150,940 (in thousands) in the previous year. The increase in expenses was attributed to higher salaries, wages, and benefits, which rose by 2.6% in Q3 and 3.8% for the nine months, driven by increased employee costs.

Old Dominion's cash and cash equivalents significantly decreased to $74,163 (in thousands) as of September 30, 2024, down from $433,799 (in thousands) at the end of 2023. Total current assets also fell to $735,059 (in thousands) from $1,143,333 (in thousands) over the same period. The company reported total liabilities of $1,250,091 (in thousands), a slight decrease from $1,254,582 (in thousands) at the end of 2023.

In terms of strategic developments, Old Dominion completed its $2.0 billion stock repurchase program in May 2024 and initiated a new $3.0 billion program in July 2023, with approximately $2.44 billion remaining available as of September 30, 2024. The company also declared dividends of $0.26 per share for Q3 2024, up from $0.20 per share in Q3 2023.

Overall, while Old Dominion experienced a decline in quarterly revenue and net income, it maintained a positive trajectory in year-to-date performance and continued its strategic focus on stock repurchases and dividend increases.