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 GroupQ2/24Q2/23Y/Y % ChangeTotal revenue$287$2744.7%Truckload combined:Revenue$201$1858.7%Freight revenue (ex fuel)$171$15510.3%Revenue per total mile$2.382.322.6%Revenue/tractor/week$5,726$5,6781%Adjusted OR %92.5%91.6%1%Managed freight:Revenue$60.3$63.2(4.5%)Adjusted operating income$3,594$2,07074%Adjusted OR %94.5%96.9%(2.5%)Expedited freight: Revenue (ex fuel)$88.9$85.93.4%Adjusted operating income$5,302$7,953(33%)Adjusted OR %95.6%94.4%1.3%Dedicated freight:Revenue (ex fuel)$93.4$81.115%Adjusted operating income$7,486$5,09446%Adjusted OR %94.2%96%(1.8%)Adjusted earnings per share$1.04$1.07(2.8%)Revenue and operating income in millions.
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