What Happened?
Shares of freight carrier Old Dominion (NASDAQ: ODFL) fell 6% in the pre-market session after the company reported disappointing fourth-quarter 2025 financial results, which were followed by an analyst downgrade.
The freight company's revenue fell 5.7% compared to the same period in the previous year, driven by a 10.7% decline in tons shipped per day. This led to a n 11.4% drop in diluted earnings per share to $1.09. The company’s operating ratio, a measure of efficiency, also worsened. Adding to the pressure, the company faced a tougher cost environment, with core cost inflation projected to rise in 2026. In response to the weak report, analysts at Baird lowered their rating on the stock from Neutral to Underperform, citing concerns over shipping volumes.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Old Dominion Freight Line? Access our full analysis report here, it’s free.
What Is The Market Telling Us
Old Dominion Freight Line’s shares are somewhat volatile and have had 14 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The biggest move we wrote about over the last year was 6 months ago when the stock dropped 8.7% on the news that the company reported second-quarter earnings and revenue that missed Wall Street expectations. The trucking company posted revenue of $1.41 billion, down 6.1% from the previous year and just below analysts' forecasts of $1.42 billion. Earnings per share came in at $1.27, which also fell short of the $1.29 Wall Street had expected. Company management pointed to the ongoing "softness in the domestic economy" and a "prolonged freight downturn" as the primary reasons for the disappointing results. The weaker performance occurred amid a challenging macroeconomic backdrop for the logistics industry, which weighed on investor sentiment.
Old Dominion Freight Line is up 28.7% since the beginning of the year, and at $204.87 per share, it is trading close to its 52-week high of $209.29 from February 2025. Investors who bought $1,000 worth of Old Dominion Freight Line’s shares 5 years ago would now be looking at an investment worth $1,956.
While Wall Street chases Nvidia at all-time highs, an under-the-radar semiconductor supplier is dominating a critical AI component these giants can’t build without. Click here to access our full research report, it’s free.
