NYSE$CVLG

Covenant Logistics Group Inc · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

Covenant Logistics' financial performance remained strong amidst general market headwinds, marked by freight revenue growth and adjusted operating income growth.

Covenant Logistics Group reported second quarter earnings of $0.88 per diluted share and non-GAAP adjusted earnings of $1.04 per diluted share. Freight revenue grew by 5.3% year-over-year, and adjusted operating income increased by 15.0%. The company navigated a challenging freight environment by capitalizing on new commercial opportunities and controlling costs.

  • Reported earnings of $0.88 per diluted share and non-GAAP adjusted earnings of $1.04 per diluted share.
  • Freight revenue increased 5.3% year-over-year.
  • Adjusted operating income grew by 15.0% year-over-year.
  • Transport Enterprise Leasing contributed pre-tax net income of $4.1 million.

Headline financials

Total Revenue

$287M

Previous: $274M+4.9%
EPS

$0.88

Previous: $0.54+63.0%
Avg Freight Revenue per Tractor per Week

$5.73K

No prior period
Avg Freight Revenue per Total Mile

$2.38

No prior period
Avg Miles per Tractor per Period

31.3K

No prior period
Weighted Avg Tractors for Period

2.3K

No prior period
Capital Expenditures

-$98.9M

Previous: -$59.1M-67.4%
Free Cash Flow

-$86.7M

Previous: -$46.8M-85.4%
Net Income

$12.2M

Previous: $12.3M-0.8%
Operating Income

$15.6M

Previous: $11.8M+32.2%
Gross Profit

-$65.3M

Previous: -$63.2M-3.3%
Cash & Equivalents

$1.28M

Previous: $7.82M-83.6%
Total Assets

$995M

Previous: $871M+14.3%
Stock-Based Comp

$765K

Previous: $1.77M-56.9%

Revenue & EPS history

Covenant Logistics · Revenue · Quarterly

$287M

Q2 2024+4.9%vs Q2 2023
Beat estimate in 4 of 14 quarters(29%)
ActualEstimate

Revenue by segment

Covenant Logistics · $253M total across 4 segments · Q3 2023

  • Expedited - Truckload
    $91.7M
  • Managed Freight
    $69.7M
  • Dedicated - Truckload
    $66.9M
  • Warehousing
    $25M

Forward guidance

Covenant Logistics anticipates continued improvement to its business model and is actively working to take the company to the next level of performance. While freight market fundamentals have continued to slowly improve and macroeconomic indicators are beginning to positively reveal themselves, absent an outside catalyst, they believe a material improvement in the freight market will take time.

Tailwinds

  • Consistently strong financial performance.
  • Benefits from structural changes to business model.
  • Commitment to continued improvement.
  • Freight market fundamentals slowly improving.
  • Macroeconomic indicators beginning to positively reveal themselves.

Headwinds

  • Weak general freight market.
  • Material improvement in freight market will take time absent an outside catalyst.
  • Focus and commitment remains unchanged.
  • Executing strategic plan through tactical step by step execution.
  • Capitalizing on opportunities that drive deeper into the supply chain.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2024

Historical avgQ2 2024

+0.3%

Avg return

Earnings day

+4.2%

Avg return

5 days after

+6.0%

Avg return

30 days after

53%

21 / 40 earnings

Positive

+17.5%

Q2 2022

Best reaction

-19.7%

Q3 2021

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+0.5%+11.7%+19.6%
Q4 2025-4.4%+10.5%+13.9%
Q3 2025-9.4%-7.7%-12.7%
Q2 2025-1.8%-2.9%-5.0%
Q1 2025+10.4%+5.9%+17.0%
Q4 2024-2.9%-1.4%-11.7%
Q3 2024-2.3%-1.3%+9.9%
Q2 2024+6.8%+6.3%+4.6%
Q1 2024+1.1%+2.8%+7.2%
Q4 2023+2.7%+3.9%+6.5%
Q3 2023-6.3%-6.9%+1.4%
Q2 2023+13.0%+15.5%+3.9%
Q1 2023+14.7%+20.7%+14.3%
Q4 2022-19.4%-12.0%-6.2%
Q3 2022+3.9%+11.5%+23.0%
Q2 2022+17.5%+14.0%+10.8%
Q1 2022+8.4%+12.7%+17.2%
Q4 2021-4.5%-1.0%+2.3%
Q3 2021-19.7%-16.4%-19.0%
Q2 2021+5.8%+4.9%+18.4%
Q1 2021+9.2%+10.0%+13.3%
Q4 2020-7.1%-5.7%+16.1%
Q3 2020-11.1%-20.7%+6.6%
Q2 2020+6.1%+18.2%+1.9%
Q1 2020-1.2%+25.8%+56.3%
Q4 2019-2.1%+5.0%+19.4%
Q3 2019+1.5%+3.3%-14.9%
Q2 2019+4.1%+11.1%-4.8%
Q1 2019-3.9%-5.3%-20.0%
Q4 2018+0.7%+6.5%+10.8%
Q3 2018-1.8%-0.8%-6.2%
Q2 2018+1.4%+1.9%+1.0%
Q1 2018-3.2%-5.3%+3.7%
Q4 2017+1.6%+1.2%-11.1%
Q3 2017+4.4%+8.0%+9.2%
Q2 2017+1.7%+10.9%+26.6%
Q1 2017-0.4%+8.3%-1.2%
Q4 2016+0.6%+9.1%+0.5%
Q3 2016-1.1%+6.8%+26.8%
Q2 2016-0.7%+9.8%-7.8%
Q1 2016
Q4 2015
Q3 2015
Q2 2015
Q1 2015
Q4 2014
Q3 2014
Q2 2014
Q1 2014
Q4 2013
Q3 2013
Q2 2013
Q1 2013
Q4 2012
Q3 2012
Q2 2012
Q1 2012
Q2 2011
Q4 2011
Q4 2009
Q3 2011
Q4 2010
Q1 2011
Q3 2010
Q2 2010
Q1 2010

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