Covenant Logistics Group reported revenue of $287.5 million in the second quarter after the market closed Wednesday, an increase of 4.7% year-over-year compared to 2023.
The company posted adjusted second-quarter earnings of $1.04 cents per share, a 2.8% decrease compared to the same year-ago period.
Chattanooga, Tennessee-based Covenant’s (NASDAQ: CVLG) second-quarter EPS surpassed the consensus estimate of 99 cents per share. But the company missed Wall Street’s revenue prediction of $299 million.
David Parker, Covenant chairman and CEO said Covenant showed “consistently strong financial performance over the duration of a very weak general freight market.”
Adjusted net income was $14.45 million compared to $14.44 million in the year-ago quarter.
“While we believe freight market fundamentals have continued to slowly improve and macroeconomic indicators are beginning to positively reveal themselves, absent an outside catalyst, we believe a material improvement in the freight market will take time,” Parker said in a news release.
Combined truckload revenue was $201.4 million in the second quarter, an 8.7% y/y increase.
The company operates four business segments: expedited, dedicated, warehousing and managed freight transportation.
Freight revenue per tractor per week increased 1% y/y to $5,726 during the second quarter.
Total revenue in the expedited truckload segment increased 3.8% y/y to $108 million, and dedicated segment revenue increased 15% y/y to $93.4 million.
Covenant’s managed freight segment saw revenue of $60.3 million in the second quarter, a decrease of 5% from the same time last year. The warehousing segment had revenue of $25.3 million during the quarter, a 1% y/y increase.
Covenant will hold a conference call to discuss results with analysts at 9 a.m. Thursday.
| Covenant Logistics Group | Q2/24 | Q2/23 | Y/Y % Change |
| Total revenue | $287 | $274 | 4.7% |
| Truckload combined: | |||
| Revenue | $201 | $185 | 8.7% |
| Freight revenue (ex fuel) | $171 | $155 | 10.3% |
| Revenue per total mile | $2.38 | 2.32 | 2.6% |
| Revenue/tractor/week | $5,726 | $5,678 | 1% |
| Adjusted OR % | 92.5% | 91.6% | 1% |
| Managed freight: | |||
| Revenue | $60.3 | $63.2 | (4.5%) |
| Adjusted operating income | $3,594 | $2,070 | 74% |
| Adjusted OR % | 94.5% | 96.9% | (2.5%) |
| Expedited freight: | |||
| Revenue (ex fuel) | $88.9 | $85.9 | 3.4% |
| Adjusted operating income | $5,302 | $7,953 | (33%) |
| Adjusted OR % | 95.6% | 94.4% | 1.3% |
| Dedicated freight: | |||
| Revenue (ex fuel) | $93.4 | $81.1 | 15% |
| Adjusted operating income | $7,486 | $5,094 | 46% |
| Adjusted OR % | 94.2% | 96% | (1.8%) |
| Adjusted earnings per share | $1.04 | $1.07 | (2.8%) |
Freight Fraud Symposium
Double brokering. AI deepfakes. Identity theft. Freight fraud is an existential threat to the industry. Get ahead of it.
Supply Chain AI Symposium
Past the hype. Join operators, founders, and enterprise leaders figuring out how to deploy AI in supply chain.
Future of Rail Symposium
Reshoring is rewriting freight demand. Join shippers, rail executives, and government officials to shape the next decade.
Double brokering. AI deepfakes. Identity theft. Freight fraud is an existential threat to the industry. Get ahead of it.
Rock & Roll Hall of Fame • Cleveland, OH Register NowPast the hype. Join operators, founders, and enterprise leaders figuring out how to deploy AI in supply chain.
The Old Post Office • Chicago, IL Register NowReshoring is rewriting freight demand. Join shippers, rail executives, and government officials to shape the next decade.
The Signal at Chattanooga Choo Choo • Chattanooga, TN Register Now