NYSE$CVLG

Covenant Logistics Group Inc · Q3 2024 earnings

Q3 2024 earnings · · Investor relations

Briefing

Covenant Logistics Group reported third quarter earnings with freight revenue increase and operating income growth.

Covenant Logistics Group reported third quarter earnings of $0.94 per diluted share and non-GAAP adjusted earnings of $1.09 per diluted share. Freight revenue grew by 2.1% year-over-year, and operating income increased by 7.2%. The company also reduced its net indebtedness by $36.6 million sequentially and improved the average age of its fleet.

  • Earnings per diluted share were $0.94, and non-GAAP adjusted earnings per diluted share were $1.09.
  • Freight revenue increased by 2.1% year-over-year.
  • Operating income grew by 7.2% year-over-year.
  • Net indebtedness decreased by $36.6 million sequentially.

Headline financials

Total Revenue

$288M

Previous: $289M-0.3%
EPS

$0.94

Previous: $0.57+64.9%
Avg Freight Revenue per Tractor per Week

$5.64K

No prior period
Avg Freight Revenue per Total Mile

$2.41

No prior period
Avg Miles per Tractor per Period

30.7K

No prior period
Weighted Avg Tractors for Period

2.3K

No prior period
Capital Expenditures

-$131M

Previous: -$112M-17.4%
Free Cash Flow

-$118M

Previous: -$98.5M-20.2%
Net Income

$13M

Previous: $13.5M-3.5%
Operating Income

$16.2M

Previous: $15.1M+7.2%
Gross Profit

-$63M

Previous: -$69.9M+9.8%
Cash & Equivalents

$35.2M

Previous: $7.39M+376.4%
Total Assets

$1.01B

Previous: $892M+13.2%
Stock-Based Comp

$988K

Previous: $1.88M-47.6%

Revenue & EPS history

Covenant Logistics · Revenue · Quarterly

$288M

Q3 2024-0.3%vs Q3 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

The company believes that the overall general freight market will take time to meaningfully improve due to lingering excess carrier capacity and the lack of an immediate catalyst to improve volumes. They are seeing some green shoots in the form of new dedicated business awards and a small number of customer rate increases, but these wins have been somewhat offset with softer than anticipated volumes, particularly in the Expedited segment.

Tailwinds

  • New dedicated business awards
  • Customer rate increases
  • Focus on strategic plan execution
  • Capitalizing on opportunities to drive deeper into the supply chain
  • Adding value for customers

Headwinds

  • Lingering excess carrier capacity
  • Lack of an immediate catalyst to improve volumes
  • Softer than anticipated volumes, particularly in Expedited segment
  • Overall general freight market will take time to meaningfully improve
  • Multi-year contractual agreements will likely take time to execute

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 Q3 2024

Historical avgQ3 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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