Freight News:
Covenant Logistics sees 4.7% rise in Q2 earnings amid ‘weak’ freight market
Covenant Logistics Group reported revenue of $287.5 million in the second quarter after the market closed Wednesday, an increase of 4.7% year-over-year compared to 2023.
The company posted adjusted second-quarter earnings of $1.04 cents per share, a 2.8% decrease compared to the same year-ago period.
Chattanooga, Tennessee-based Covenant’s (NASDAQ: CVLG) second-quarter EPS surpassed the consensus estimate of 99 cents per share. But the company missed Wall Street’s revenue prediction of $299 million.
David Parker, Covenant chairman and CEO said Covenant showed “consistently strong financial performance over the duration of a very weak general freight market.”
Adjusted net income was $14.45 million compared to $14.44 million in the year-ago quarter.
“While we believe freight market fundamentals have continued to slowly improve and macroeconomic indicators are beginning to positively reveal themselves, absent an outside catalyst, we believe a material improvement in the freight market will take time,” Parker said in a news release.
Combined truckload revenue was $201.4 million in the second quarter, an 8.7% y/y increase.
The company operates four business segments: expedited, dedicated, warehousing and managed freight transportation.
Freight revenue per tractor per week increased 1% y/y to $5,726 during the second quarter.
Total revenue in the expedited truckload segment increased 3.8% y/y to $108 million, and dedicated segment revenue increased 15% y/y to $93.4 million.
Covenant’s managed freight segment saw revenue of $60.3 million in the second quarter, a decrease of 5% from the same time last year. The warehousing segment had revenue of $25.3 million during the quarter, a 1% y/y increase.
Covenant will hold a conference call to discuss results with analysts at 9 a.m. Thursday.
| Covenant Logistics Group | Q2/24 | Q2/23 | Y/Y % Change |
| Total revenue | $287 | $274 | 4.7% |
| Truckload combined: | |||
| Revenue | $201 | $185 | 8.7% |
| Freight revenue (ex fuel) | $171 | $155 | 10.3% |
| Revenue per total mile | $2.38 | 2.32 | 2.6% |
| Revenue/tractor/week | $5,726 | $5,678 | 1% |
| Adjusted OR % | 92.5% | 91.6% | 1% |
| Managed freight: | |||
| Revenue | $60.3 | $63.2 | (4.5%) |
| Adjusted operating income | $3,594 | $2,070 | 74% |
| Adjusted OR % | 94.5% | 96.9% | (2.5%) |
| Expedited freight: | |||
| Revenue (ex fuel) | $88.9 | $85.9 | 3.4% |
| Adjusted operating income | $5,302 | $7,953 | (33%) |
| Adjusted OR % | 95.6% | 94.4% | 1.3% |
| Dedicated freight: | |||
| Revenue (ex fuel) | $93.4 | $81.1 | 15% |
| Adjusted operating income | $7,486 | $5,094 | 46% |
| Adjusted OR % | 94.2% | 96% | (1.8%) |
| Adjusted earnings per share | $1.04 | $1.07 | (2.8%) |
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Editor: Noi Mahoney