(ODFL) - Second-quarter profit rose 55% on a 25% jump in revenue

Old Dominion Freight Line has exceeded earnings estimates in six consecutive quarters. Year-to-year growth has routinely exceeded 30% over that time period. Seven analysts have raised their estimates for this year, while six have done so for next year. Over the past 60 days, this year's estimates have increased 5.3% to $1.97 per share. Full Analysis Old Dominion Freight Line, Inc. (ODFL) operates as a less-than-truckload multiregional motor carrier in the United States and Canada. It provides one-to-five day service, and next-day and second-day services. The company also offers premium expedited services, truckload services, truckload brokerage services, logistical solutions, container delivery to and from 10 port facilities, and distribution services. As of March 1, 2006, it operates 171 service centers. As of December 31, 2005, the company operated 4,028 tractors; and a fleet of 15,701 trailers, including linehaul tractors, pickup and delivery tractors, pickup and delivery trucks, linehaul trailers, and pickup and delivery trailers. ODFL said in late-July its second-quarter profit rose 55% on a 25% jump in revenue. Old Dominion earned $21.6 million, or 58 cents per share, compared with $13.9 million, or 37 cents per share, for the same quarter in 2005. Revenue grew to $330.8 million from $264.3 million in the year-ago period. Analysts only expected 51 cents. Earl E. Congdon, Chairman and Chief Executive Officer of Old Dominion, commented, "We are pleased to report Old Dominion's strong profitable growth for the second quarter of 2006, as we continued to deliver revenue growth well above average industry growth rates while maintaining focus on margin improvement. We believe our success is increasingly driven by our ability to provide single-source solutions for our customers' logistics needs in regional, national and international markets." The company also increased its guidance for 2006 earnings per diluted share to a range of $1.94 to $1.97 from the previous range of $1.76 to $1.84. In addition, it established its earnings guidance for the third quarter of 2006 in a range of $0.51 to $0.54, compared with $0.43 earned for the third quarter of 2005. ODFL has exceeded earnings estimates in six consecutive quarters. Year-to-year growth has routinely exceeded 30% over that time period. Seven analysts have raised their estimates for this year, while six have done so for next year. Over the past 60 days, this year's estimates have increased 5.3% to $1.97 per share. The stock is currently trading at 13.3x next year's estimates of $2.26 per share, below the projected long-term growth rate of 16.75%, giving the stock a PEG ratio of 0.79. Note: The Zacks Rank is a very sensitive indicator that can change frequently for an individual stock. This important indicator is updated daily on Zacks.com and is available to Zacks Premium subscribers. As such, it is prudent to check the site for the latest Zacks Rank on the stocks highlighted in this section. Simply click the link for the stock or enter the symbol in the ticker entry box in the upper left hand corner of the web site. Content Courtesy: Zacks Investment Research #1 Ranked Stocks Highlight Archive To truly take advantage of the Zacks Rank, you need to first understand how it works. That is why we created the free special report: Zacks Rank Guide: Harnessing the Power of Earnings Estimate Revisions. | Blog Home| VitalStocks Home