Customize Consent Preferences

We use cookies to help you navigate efficiently and perform certain functions. You will find detailed information about all cookies under each consent category below.

The cookies that are categorized as "Necessary" are stored on your browser as they are essential for enabling the basic functionalities of the site. ... 

Always Active

Necessary cookies are required to enable the basic features of this site, such as providing secure log-in or adjusting your consent preferences. These cookies do not store any personally identifiable data.

No cookies to display.

Functional cookies help perform certain functionalities like sharing the content of the website on social media platforms, collecting feedback, and other third-party features.

No cookies to display.

Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics such as the number of visitors, bounce rate, traffic source, etc.

No cookies to display.

Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.

No cookies to display.

Advertisement cookies are used to provide visitors with customized advertisements based on the pages you visited previously and to analyze the effectiveness of the ad campaigns.

No cookies to display.

FRESH

Thursday, April 3, 2025
Logistics

Covenant Logistics optimistic despite 7.4% drop in Q4 revenue

Covenant Logistics Group reported adjusted earnings per share of $1.07 for the fourth quarter Tuesday after the market closed, a 22% year-over-year (y/y) decline.

Covenant’s total revenue in the quarter declined 7.4% y/y to $273.9 million, with the carrier citing weaker freight conditions in the truckload market despite strategic planning that yielded positive results, said David Parker, Covenant chairman and CEO.

“Despite the challenges that come with a soft freight market, our team found a way to be successful in 2023,” Parker said in a news release. “We achieved our second-best adjusted earnings per diluted share in company history while improving the durability and diversification of our business through our acquisitions of Lew Thompson and Son Trucking Inc. and Sims Transport Services.”

Chattanooga, Tennessee-based Covenant’s (NASDAQ: CVLG) fourth-quarter EPS and revenue beat Wall Street predictions of $1.03 and $214.5 million, respectively.

The transportation services provider posted total freight revenue of $240 million during the quarter, a 6% y/y decrease from the same period last year. Combined truckload revenue was $184 million in the fourth quarter, a 7% y/y decline.

The company operates four business segments: expedited, dedicated, warehousing and managed freight transportation.

Freight revenue per tractor per week decreased 8% y/y to $5,344 during the fourth quarter.

Revenue in the expedited truckload segment decreased 6.5% y/y to $84.4 million, and dedicated segment revenue dipped 6% y/y to $78.6 million.

Covenant’s managed freight segment saw revenue of $65 million in the fourth quarter, a decrease of 14.5% from the same time last year. The warehousing segment had revenue of $24.6 million during the quarter, a 16% y/y increase.

Parker said the company does not anticipate the freight market to recover in the short term.

“As we look to 2024, we do not see anything in the first half of the year that would indicate a near-term recovery of the freight market,” Parker said. “In the first quarter, we expect our revenue and earnings to decline, reflecting normal seasonality and the temporary headwinds of severe inclement weather conditions, year over year rate reductions in our expedited segment and incremental costs associated with a large new customer startup within our dedicated segment.”

Covenant will hold a conference call to discuss results with analysts at 9 a.m. Wednesday.

Covenant Logistics GroupQ4/23Q4/22Y/Y % ChangeTotal revenue$273.9$296.1(7.4%)Truckload combined:Total revenue$184.0$198.3(7.2%)Freight revenue (ex fuel)$150.3$157.9(4.8%)Average tractors2,1412,218(3.4%)Revenue per total mile$2.31$2.53(8.6%)Revenue/tractor/week$5,344$5,417(1.3%)Adjusted OR %91.4%91.8%(0.4%)Managed freight:Revenue$65.0$76.1(14.5%)Adjusted operating income$2,748$8,830(68.8%)Adjusted OR % 95.8%88.4%8.3%Expedited freight:Revenue (ex fuel)$105.4$114.4(7.8%)Adjusted operating income$7.2$10.3(30%)Adjusted OR %91.4%94.8%(3.5%)Dedicated freight:Revenue (ex fuel)$78.6$83.8(6.2%)Adjusted operating income$5.6$2.5124%Adjusted OR %91.4%96.2%(4.9%)Adjusted earnings per share$1.07$1.37(21.8%)Revenue and operating income in millions.

The post Covenant Logistics optimistic despite 7.4% drop in Q4 revenue appeared first on FreightWaves.

Related Posts

Load More Posts Loading...No More Posts.