Covenant Logistics Group Q3 earnings: First look

Company misses Wall Street expectations on third-quarter revenue

Third-quarter freight revenue per tractor per week at Covenant Logistics Group fell about 1% year over year to $5,637. (Photo: Jim Allen/FreightWaves)

Covenant Logistics Group reported $258.6 million in freight revenue during the third quarter, with truckload operations increasing 2.8% to $199 million.

Chattanooga, Tennessee-based Covenant (NASDAQ: CVLG) reported adjusted earnings per share of $1.09 in the quarter, beating analysts’ estimates of $1.08 per share.

The company posted total revenue of $287.8 million in the quarter, a 0.3% year-over-year decline compared to 2023, and missed Wall Street estimates of $302 million.

“Highlights of our third quarter results include year over year freight revenue growth of 2.1%, operating income growth of 7.2%, and non-GAAP adjusted operating income growth of 8.3%,” Chairman and CEO David R. Parker said in a news release. “Our core business continues to perform well despite the prolonged general freight market down cycle.”

Freight revenue per tractor per week fell about 1% to $5,637. The expedited truckload segment revenue decreased 8% to $104.3 million, while dedicated segment revenue rose 18% to $94.7 million.

Covenant’s managed freight segment saw revenue of $63.3 million in the third quarter, a decrease of 9% from the same time last year. The warehousing segment had revenue of $25.1 million during the quarter, a 1% year-over-year increase.

Covenant will hold a conference call to discuss results with analysts at 10 a.m. Thursday.

Covenant Logistics GroupQ3/24Q2/24Y/Y % Change
Total revenue$287.8288.7(0.3%)
Truckload combined:
Revenue$199$193.62.8%
Freight revenue (ex fuel)$170$158.67.2%
Revenue per total mile$2.41$2.333.4%
Revenue/tractor/week$2,295$2,1267.9%
Adjusted OR%91.5%91.9%(0.4%)
Managed freight:
Revenue$63.3$69.7(9%)
Adjusted operating income$2,716$3,854(29%)
Adjusted OR%95.7%94.5%(1%)
Expedited freight:
Revenue (ex fuel)$87.3$91.7(4.7%)
Adjusted operating income$7,000$8,549(18%)
Adjusted OR%92%90.7%1.2%
Dedicated freight:
Revenue (ex fuel)$82.6$66.923%
Adjusted operating income$7,464$4,29174%
Adjusted OR%91%93.6%(2.7%)
Adjusted earnings per share$1.09$1.13(3.5%)
Revenue and operating income in millions.
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Noi Mahoney is a Texas-based journalist who covers cross-border trade, logistics and supply chains for FreightWaves. He graduated from the University of Texas at Austin with a degree in English in 1998. Mahoney has more than 20 years experience as a journalist, working for newspapers in Maryland and Texas. Contact nmahoney@freightwaves.com