Covenant Logistics Group reported $258.6 million in freight revenue during the third quarter, with truckload operations increasing 2.8% to $198 million.
Chattanooga, Tennessee-based Covenant (NASDAQ: CVLG) reported adjusted earnings per share of $1.09 in the quarter, beating analysts’ estimates of $1.08 per share.
The company posted total revenue of $287.8 million in the quarter, a 0.3% year-over-year
decline compared to 2023, and missed Wall Street estimates of $302 million.
“Highlights of our third quarter results include year over year freight revenue growth of 2.1%, operating income growth of 7.2%, and non-GAAP adjusted operating income growth of 8.3%,” Chairman and CEO David R. Parker said in a news release. “Our core business continues to perform well despite the prolonged general freight market down cycle.”
Freight revenue per tractor per week fell about 1% to $5,637. The expedited truckload segment revenue decreased 8% to $104.3 million, while dedicated segment revenue rose 18% to $94.7 million.
Covenant’s managed freight segment saw revenue of $63.3 million in the third quarter, a decrease of 9% from the same time last year. The warehousing segment had revenue of $25.1 million during the quarter, a 1% year-over-year increase.
Covenant will hold a conference call to discuss results with analysts at 10 a.m. Thursday.
Covenant Logistics GroupQ3/24Q2/24Y/Y % ChangeTotal revenue$287.8288.7(0.3%)Truckload combined:Revenue$199$193.62.8%Freight revenue (ex fuel)$170$158.67.2%Revenue per total mile$2.41$2.333.4%Revenue/tractor/week$2,295$2,1267.9%Adjusted OR%91.5%91.9%(0.4%)Managed freight:Revenue$63.3$69.7(9%)Adjusted operating income$2,716$3,854(29%)Adjusted OR%95.7%94.5%(1%)Expedited freight:Revenue (ex fuel)$87.3$91.7(4.7%)Adjusted operating income$7,000$8,549(18%)Adjusted OR%92%90.7%1.2%Dedicated freight:Revenue (ex fuel)$82.6$66.923%Adjusted operating income$7,464$4,29174%Adjusted OR%91%93.6%(2.7%)Adjusted earnings per share$1.09$1.13(3.5%)Revenue and operating income in millions.
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