1/31/2024 0 Comments Old dominion tracking 25709152612![]() ![]() This largely centered around optimizing the company's network so that it was able to cut down on the distance that trucks traveled. Management had been working hard on a program called Yellow One that aimed to significantly improve operations. As you can see in the image above, the company truly did span not only the 48 contiguous US states, it also had operations throughout parts of Canada and Mexico. This massive network of assets was powered by roughly 30,000 employees. In addition to operating 308 terminals, the company had around 12,700 tractors and 42,000 trailers. It generated $5.2 billion in revenue in 2022 by facilitating 14.2 million shipments. In addition to being the second-largest player in this space as measured by network size, Yellow described itself as being the second-largest trucking company on the continent. This is an important niche in the logistics market because it makes possible the transportation of quantities of goods that are fairly small by comparison to what other companies might ship. For those who don't know, LTL logistics companies operate in a way that allows multiple shippers to send their freight on the same trailer rather than having a single company's freight dedicated to an individual trailer. According to management, the business operated the second-largest LTL (less-than-truckload) network throughout North America. What we do know, however, is that Yellow, using DIP (debtors-in-possession) financing, continues to operate, but only until it can appropriately market and sell off its assets.Įven though the company itself was fairly small compared to the broader economy, it was a rather sizable player in its space. ![]() Whatever the truth behind the matter might be at this point is probably irrelevant. The way the company told the story, the union made it all but impossible for the enterprise to continue making necessary changes to its operations in order to be competitive moving forward. A lot is up for grabsĪccording to the press release issued by Yellow, the company was essentially forced into bankruptcy because of conflicts between it and the International Brotherhood of Teamsters union. Though I would definitely argue that the former of these two is far better positioned to capitalize on this once-in-a-century opportunity. ( NYSE: XPO ) stand to benefit from this development. It is my contention that both Old Dominion Freight Line ( NASDAQ: ODFL ) and XPO Inc. While this does represent, very likely, a complete loss for the company and its shareholders, it does open up opportunities for other players in this space. Unlike many instances of bankruptcy that involve some form of reorganization, Yellow elected to start winding down its operations, resulting in around 30,000 American jobs eventually being lost and a well-established player in a highly competitive market shuttering its doors. That still outpaced the broader index, which declined 2.47% as of Thursday's close.On August 6th of this year, the management team at logistics company Yellow Corporation ( OTC:YELLQ) announced that, after nearly 100 years in operation, the company was filing for bankruptcy protection. That doesn't look so bad, but is pessimism setting in? Before Friday's opening bell, the S&P transportation ETF was down 1.86% for the week. That index advanced 10.77% in the past three months and 9.41% in January. ![]() While it's not a "pure play" trucking index, it offers a glimpse into what manufacturers are shipping to various business customers. It also tracks airlines, railroads, bulk shippers, and freight forwarders. Hunt, Old Dominion, and Landstar System, Inc (NASDAQ: LSTR), among other trucking and logistics companies. However, the SPDR S&P Transportation ETF (NYSEARCA: XTN) includes J.B. There's no major index that tracks trucking in particular. In the earnings call, company president Shelly Simpson sought to ease investor concerns about a lengthy downturn, saying, "We have had good signals from our customers about Q2 starting up back to a more normalized or having a more normal environment." However, shares rallied as the company increased its dividend. That was a year-over-year decline of 16% in earnings and revenue growth of just 4%, well below the double-digit pace in the past two years. (NASDAQ: JBHT) reported $1.92 per share on revenue of $3.649 billion, missing top and bottom-line views, as MarketBeat earnings data show. Other truckers are also seeing dramatic slowdowns. It's also worth following the entire industry to be sure Old Dominion's slowdown is not company-specific. That's still an excellent growth rate, but if customers put on the brakes, that's something to watch for. In the past two quarters, earnings growth decelerated from 53% to 36%. The same trend is occurring on the earnings side, where the company grew net income at double-digit rates for the past eight quarters. ![]()
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