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Dec 31, 2021
Old Dominion Q4 2021 Earnings Report
Old Dominion's Q4 2021 financial performance resulted in new company records for annual revenue and profitability.
Key Takeaways
Old Dominion Freight Line reported a strong fourth quarter with revenue growth primarily driven by a 16.1% increase in LTL revenue per hundredweight and a 14.3% increase in LTL tons per day. The operating ratio improved to 73.6%, and the company saw improvements in both direct operating costs and total overhead costs as a percentage of revenue.
Revenue growth was primarily due to increases in LTL revenue per hundredweight and LTL tons per day.
Operating ratio improved 270 basis points to 73.6% due to quality revenue growth and operational efficiency.
Salaries, wages, and benefit costs as a percent of revenue improved to 46.9% from 50.7%.
The company intends to continue investing in service center capacity, fleet, technologies, and employees to sustain business momentum.
Revenue by Segment
Forward Guidance
Old Dominion expects to continue investing in service center capacity, its fleet, technologies, and employees. The company anticipates customer demand trends to remain positive and believes its service and capacity advantages will support its ability to win additional market share throughout 2022.
Positive Outlook
- Company expects no near-term changes in customer demand trends.
- Service and capacity advantages will continue to support ability to win additional market share throughout 2022.
- Intends to continue investing in service center capacity.
- Intends to continue investing in fleet.
- Intends to continue investing in technologies.
Challenges Ahead
- Challenges associated with executing growth strategy.
- Risks related to public health epidemics, including the continuing impact of the COVID-19 pandemic.
- Changes in relationships with significant customers.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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