Citi Adjusts its Estimates on Old Dominion Freight Line

Citi is adjusting its estimates on Old Dominion Freight Line Inc. ODFL. “We are increasing our 2Q, 2011, and 2012 EPS estimates by 10%, 5%, and 5%, to $0.57, $2.00, and $2.50, from $0.52, $1.90, and $2.40 respectively,” Citi writes. “We are now slightly above consensus ($0.54, $1.98, $2.39), but highlight that additional upside to our estimates is possible if incremental margins keep pace with 1Q11. “In 2Q11 we are conservatively modeling a 320 bp sequential decline in incremental operating ratio to 82.6% from 1Q11, although we believe that the company may be able narrow the gap. Holding sequential incremental operating margins at 79.5% (from 1Q11) yields EPS of $0.60 EPS in 2Q11, $0.03 above our current estimate and $0.06 above consensus.” Old Dominion Freight Line closed Wednesday at $34.07.