Covenant Logistics Group reported Wednesday after the market close third-quarter earnings of $1.02 per share on total revenue of $274.5 million, a 30% increase compared to the same year-ago period.
Covenant beat analysts’ expectations for earnings per share of $1 and revenue of $234 million.
David R. Parker, Covenant’s chairman and CEO, said the $1.02 per share earnings was the highest earnings for any quarter in the company’s history.
“In the third quarter we experienced the continuation of an exceptionally strong freight market resulting from growing economic activity, low inventories and supply chain disruptions, accompanied by constrained capacity due to an intensifying national driver shortage,” Parker said in a statement. “These conditions have continued into the fourth quarter.”
The Chattanooga, Tennessee-based truckload carrier said it expects to generate over $1 billion in revenue and the highest annual earnings per share in the company’s history during 2021.
Covenant’s (NASDAQ: CVLG) truckload fleet saw revenue excluding fuel surcharges increase 7% year-over-year to $144.6 million.
Revenue per tractor per week increased 14% to $4,644, partially offset by a 6% decline in average tractor count at 2,370 units. Miles per tractor declined 3% year-over-year to 28,240 during the third quarter, while revenue per loaded mile increased 9% year-over-year to $2.
The truckload segment posted a 92.4% adjusted operating ratio during the third quarter, compared to 93% during the same period last year.
Covenant’s expedited segment posted revenue excluding fuel surcharges of $72.9 million during the quarter, a 2% increase from the same year-ago period.
The company’s dedicated segment saw revenue excluding fuel surcharges increase 13% year-over-year to $71.6 million.
The company will host a call at 10 a.m. Thursday to discuss the third-quarter results with analysts.
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