THOMASVILLE, N.C. - Old Dominion Freight Line, Inc. (NASDAQ:ODFL) reported a slight uptick in its fourth-quarter revenue by 0.3% year-over-year to $1.495B, with a 0.7% increase in diluted earnings per share to $2.94. Despite a challenging economic environment, the company's less-than-truckload (LTL) services saw revenue growth, and it maintained a high on-time service performance of 99%.
The company's operating income for the fourth quarter decreased by 2.1% to $421M, and the operating ratio worsened slightly to 71.8% from 71.2% in the same period last year. Net income for the quarter was marginally down by 0.3% to $322.8M. For the full year, total revenue declined by 6.3% to $5.866B, and net income was down 10% to $1.239B.
Old Dominion's President and CEO, Marty Freeman, noted that the quarter's revenue and earnings per share increase marked the first year-over-year growth for 2023. Freeman attributed the company's stable volumes to consistent demand for LTL services and successful yield-improvement initiatives.
The company's cash flow remained strong, with net cash provided by operating activities reaching $436.7M for the quarter and $1.6B for the year. Capital expenditures totaled $105.9M in the fourth quarter and $757.3M (NYSE:MMM) for the year, with a forecast of approximately $750M for 2024, including investments in real estate, service center expansion, and technology.
In line with its capital return strategy, Old Dominion repurchased $453.6M of its shares and paid $175.1M in cash dividends during the year. The Board of Directors declared a first-quarter dividend of $0.52 per share, payable on March 20, 2024, to shareholders of record as of March 6, 2024. This dividend represents a 30% increase over the first quarter of 2023.
Freeman concluded that the company's consistent execution of its strategic plan and investments in its service network, equipment, and technology have differentiated it from competitors. He expressed confidence in Old Dominion's positioning for growth and shareholder value creation once the economy shows signs of improvement.
This report is based on a press release statement from Old Dominion Freight Line, Inc.
InvestingPro Insights
As Old Dominion Freight Line (NASDAQ:ODFL) navigates the complexities of the current economic landscape, real-time data from InvestingPro provides a deeper understanding of the company's financial health and market position. With a market capitalization of $43.19B and a robust price-to-earnings (P/E) ratio of 34.82, Old Dominion showcases a strong market valuation. The company's commitment to shareholder returns is evident through its consistent dividend growth, having raised its dividend for 7 consecutive years—a testament to its financial strength and management's confidence in the business.
InvestingPro Tips highlight that Old Dominion holds more cash than debt on its balance sheet, providing it with a solid foundation to weather economic uncertainties and invest in growth opportunities. The company's ability to cover interest payments with its cash flows further underscores its financial stability. Additionally, with analysts predicting the company will be profitable this year and noting its profitability over the last twelve months, investors may find reassurance in Old Dominion's performance track record.
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