SIG analyst Bascome Majors maintains $Old Dominion Freight Line (ODFL.US)$ with a buy rating, and adjusts the target price from $225 to $218.
According to TipRanks data, the analyst has a success rate of 60.7% and a total average return of 10.3% over the past year.
Furthermore, according to the comprehensive report, the opinions of $Old Dominion Freight Line (ODFL.US)$'s main analysts recently are as follows:
The company's Q3 operating results slightly missed expectations due to ongoing demand weakness and persistent cost inflation.
After Old Dominion disclosed its quarterly results, a notable decline in revenue of 3% from the previous year placed stress on outcomes due to negative fixed cost leverage. This situation manifested in a 72.7% operating ratio, marking a 210 basis point increase from the previous year and falling short of expectations by 30 basis points. Future earnings per share estimates for Q4, 2024, and 2025 have been adjusted. Nonetheless, the neutral stance is maintained as the company, with 30% excess capacity, is well-positioned to capitalize on any potential freight market recovery.
Old Dominion's third-quarter performance was marginally below expectations on an EBIT basis. Despite this, the company stands out in the transportation sector due to its exceptional execution. It is poised to benefit from potential upturns in the cycle, although the timing remains uncertain. Challenges from cyclical pressures have led to adjustments in earnings projections for the coming years.
Note:
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Success rate is the number of the analyst's successful ratings, divided by his/her total number of ratings over the past year. A successful rating is one based on if TipRanks' virtual portfolio earned a positive return from the stock. Total average return is the average rate of return that the TipRanks' virtual portfolio has earned over the past year. These portfolios are established based on the analyst's preliminary rating and are adjusted according to the changes in the rating.
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