From Yahoo Finance: 2025-04-25 13:12:00

Shares of Old Dominion Freight Line (NASDAQ: ODFL) fell in sympathy with Saia, another LTL carrier, whose disappointing report highlighted the impact of the trade war and weakening economy on the trucking sector. ODFL stock was down 6.7%, while Saia plunged 29.1%.

Old Dominion met analyst expectations in its first-quarter earnings report, with revenue falling 5.8% to $1.37 billion and EPS dropping 11% to $1.19. Management cited ongoing softness in the domestic economy and a 6.3% decrease in tonnage per day.

Saia reported an increase in revenue but a sharp drop in profit in the first quarter, signaling a focus on market share gains over profitability and slower revenue growth. EPS fell from $3.38 to $1.86, below expectations at $2.76, reflecting weakening demand.

Both companies warned of softening pricing dynamics and capacity challenges in the industry due to an uncertain macroeconomic environment. With Trump’s tariff announcements taking effect after the first quarter, the LTL sector faces further challenges ahead.

Investors should brace for more challenges in the LTL sector, but historically, these stocks have shown recovery potential over the long term. Saia’s focus on market share gains over profitability and the impact of the trade war on the trucking sector highlight the industry’s current challenges.

Read more: Why Old Dominion Freight Line Stock Was Sliding Today