Earnings Watch: Old Dominion, Hub Group, Radiant Logistics Profits Move Higher
The fourth quarter 2017 earnings reporting season continued on Thursday with another three fleets – Old Dominion Freight Line, Hub Group, and Radiant Logistics – reporting increased profits, due not only to more business and better rates, but also to tax reform.
ODFL Sees Tax Benefit Of More Than $100 Million
Old Dominion Freight Line Inc. nearly doubled its fourth quarter 2017 profit, which totaled $197.3 million, or $2.39 per share, compared to $68.5 million, or 83 cents per share, a year earlier.
Revenue over the same time period improved 19.5% to $891.1 million.
The results include $9.8 million of expenses related to a special bonus paid in December to non-executive employees following the passage of Congressional tax reform, according to the company. The new tax laws also required ODFL to revalue its net deferred tax liability, which resulted in a net tax benefit of $104.9 million.
“We were pleased to see an acceleration in our revenue growth, which continued the momentum that began earlier in 2017,” said David S. Congdon, vice chairman and CEO. “Revenue for the fourth quarter increased 19.5%, which consisted of a 14.4% increase in LTL (less-than-truckload) tonnage and a 5.1% increase in LTL revenue per hundredweight. The increase in our LTL tonnage included an 11.4% increase in LTL shipments and a 2.7% increase in LTL weight per shipment.”
He said the company believes the industry pricing environment strengthened in the fourth quarter, which drove the 3.1% increase in its LTL revenue per hundredweight, excluding fuel surcharges.
For all of 2017, Old Dominion’s net income rose 56.8% to $464.8 million, while revenue moved 12.3% higher to $3.36 billion.
Analysts at the investment banking firm Stifel said it was “a very good quarter” for the carrier.
“In periods of surging demand, we believe Old Dominion is organized and disciplined enough to be able to handle a …Read the rest of this story
