NYSE$CVLG

Covenant Logistics Group Inc · Q4 2024 earnings

Q4 2024 earnings · · After market close · Investor relations

Briefing

Covenant Logistics Group reported mixed results due to a challenging freight environment, with dedicated segment profitability impacted by customer shutdowns and higher costs, while asset-light segments outperformed expectations.

Covenant Logistics Group reported Q4 earnings of $0.24 per diluted share and adjusted earnings of $0.49 per diluted share. The company's diversified business model helped to offset challenges in the dedicated segment, with asset-light segments outperforming expectations. The general freight market appears to be incrementally improving.

  • Q4 earnings were $0.24 per diluted share, and adjusted earnings were $0.49 per diluted share.
  • The Dedicated segment's adjusted profitability was below expectations due to customer shutdowns and higher costs.
  • Asset-light segments, including Managed Freight and Warehousing, outperformed expectations.
  • The Expedited segment delivered solid results due to a better peak season and improved network balance.

Headline financials

Total Revenue

$277M

Previous: $274M+1.2%
EPS (adj)

$0.49

Previous: $0.54-9.3%
Capital Expenditures

-$21.5M

Previous: $106M-120.3%
Free Cash Flow

$464K

No prior period
Net Income

$6.72M

Previous: $12.8M-47.5%
Operating Income

$8.61M

Previous: $14.3M-39.6%
Gross Profit

$31.8M

Previous: $29.8M+6.5%

Revenue & EPS history

Covenant Logistics · Revenue · Quarterly

$277M

Q4 2024+1.2%vs Q4 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 general freight market appears to be incrementally improving, but dedicated markets continue to experience customer shutdowns and volume pressure. Bad weather has hampered operations and increased costs in January. The company is focusing on positioning itself to execute quickly and gain operating leverage as conditions improve.

Tailwinds

  • General freight market appears to be incrementally improving
  • Capacity and demand are better balanced than they have been for approximately two years
  • Customers are acknowledging this during rate and volume allocation discussions
  • Focusing on positioning the Company to execute quickly and gain operating leverage as conditions improve
  • Continuing to capture new dedicated contracts to expand the fleet organically

Headwinds

  • Customers continue to experience greater than expected temporary customer shutdowns and volume pressure in dedicated markets
  • Bad weather has hampered operations and increased our costs during January, limiting any benefit of general market uplift
  • Dedicated segment's adjusted profitability fell short of our expectations
  • Higher costs related to guaranteed driver pay
  • Large current period casualty claim expense

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 Q4 2024

Historical avgQ4 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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