Old Dominion Freight Line revenue falls below forecasts as a reflection of a soft economy, while new $3 billion stock buyback program announced

Old Dominion Freight Line Inc.
ODFL,
+5.75%
reported Wednesday second-quarter profit that topped expectations while revenue fell short, amid weakness in tons carried in its trucks per day and trucking rates. The trucking company also announced a new $3 billion stock repurchase program, which adds to the $376.9 million remaining in the old program. The repurchase authorization represents 7.8% of the company’s market capitalization of $43.35 billion as of Tuesday’s close. The stock was still inactive in the premarket. Net income fell to $292.4 million, or $2.65 a share, from $376.1 million, or $3.30 a share, in the year-ago period. The FactSet consensus for earnings per share was $2.63. Revenue dropped 15.2% to $1.41 billion, below the FactSet consensus of $1.44 billion, as less-than-truckload tons per day dropped 14.1% and LTL revenue per hundredweight declined 1.1%. “Old Dominion’s second quarter financial results reflect continued softness in the domestic economy,” said Chief Executive Marty Freeman. “The resulting weakness in volumes contributed to the 15.2% decrease in our total revenue.” The stock has run up 29.4% over the past three months while the S&P 500
SPX,
-0.28%
has gained 12.6%.