NYSE$CVLG
Covenant Logistics Group Inc · Q4 2023 earnings
Q4 2023 earnings · · Investor relations
Briefing
Covenant Logistics Group's financial performance for Q4 2023 was announced, with earnings of $0.93 per diluted share and non-GAAP adjusted earnings of $1.07 per diluted share reported.
Covenant Logistics Group reported Q4 earnings of $0.93 per diluted share and adjusted earnings of $1.07 per diluted share. The asset-based segments contributed approximately 67% of total revenue and 74% of operating income. The company's 49% equity method investment with Transport Enterprise Leasing contributed pre-tax net income of $4.7 million.
- Earnings per diluted share were reported at $0.93.
- Non-GAAP adjusted earnings per diluted share were $1.07.
- Asset-based segments contributed approximately 67% of total revenue and 74% of operating income.
- Managed Freight segment experienced significant reductions in revenue and profitability.
Headline financials
Revenue & EPS history
Covenant Logistics · Revenue · Quarterly
$274M
Revenue by segment
Covenant Logistics · $253M total across 4 segments · Q3 2023
- Expedited - Truckload$91.7M—36.2%
- Managed Freight$69.7M—27.5%
- Dedicated - Truckload$66.9M—26.4%
- Warehousing$25M—9.9%
Forward guidance
The company anticipates a continuation of difficult conditions where capacity continues to exit the market at a rate that yields steady but modest improvement. In the first quarter, the company expects revenue and earnings to decline, reflecting normal seasonality and temporary headwinds.
Tailwinds
- The company's strategic plan is working.
- The company reallocated a significant amount of fixed assets away from underperforming and highly cyclical legacy operations toward acquiring three high-performing, more steady businesses.
- The result has been better margins, more stable earnings, and improved returns on capital compared with legacy operations during previous downturns.
- The company is optimistic about its ability to make incremental improvements.
- The company believes its more resilient operating model, together with the steps taken to reduce costs and inefficiencies, have positioned them well for another successful year.
Headwinds
- The company does not see anything in the first half of the year that would indicate a near-term recovery of the freight market.
- The company anticipates a continuation of difficult conditions where capacity continues to exit the market at a rate that yields steady but modest improvement.
- In the first quarter, the company expects revenue and earnings to decline, reflecting normal seasonality
- The company expects temporary headwinds of severe inclement weather conditions
- The company expects year over year rate reductions in our Expedited segment and incremental costs associated with a large new customer startup within our Dedicated segment.
Historical earnings impact
How earnings announcements have historically affected this stock's price.
Avg. return before/after earnings
Based on 19 quarterly earnings reports · overlaid with Q4 2023
+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
| Quarter | Report date | Reaction (Day 0) | +5 days | +30 days |
|---|---|---|---|---|
| Q2 2026 | — | — | — | |
| 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% | |
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