FW: LTL stocks sag on weaker-than-expected Q3 updates

FREIGHTWAVES reports:

A couple of less-than-truckload carriers reported moderating trends Wednesday. Third-quarter updates from both Old Dominion Freight Line and Saia Inc. showed that the robust year-over-year (y/y) growth rates recorded over the last few quarters are continuing to slow.

Old Dominion (NASDAQ: ODFL) reported revenue was up 14.5% y/y in August, a growth rate that was 390 basis points (bps) lower than it recorded in July. Tonnage during the month was down 0.9% y/y following a 1.4% decline in July. Lower shipment counts were only partially offset by higher weight per shipment.

The August tonnage dip was worse than expected as some analysts were calling for a slight gain to as much as a mid-single-digit increase during the month. Part of the positive expectation was due to a perceived easier comp to 2021. Old Dominion’s tonnage was up just 10.9% y/y in August 2021, which was a slowdown from increases of 30% to high-teen percentages recorded from April to July 2021…

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Dominion Freight Line and Saia were two of the worst performers on Wednesday 7 September among all the T&L stocks on our radar, having fallen 2.95% and 3.63%, respectively.

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