Freight and logistics provider Covenant Logistics (NASDAQ: CVLG) will be announcing earnings results tomorrow after market close. Here’s what to look for.
Covenant Logistics missed analysts’ revenue expectations by 2.9% last quarter, reporting revenues of $277.3 million, up 1.2% year on year. It was a softer quarter for the company, with a significant miss of analysts’ EBITDA estimates.
Is Covenant Logistics a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Covenant Logistics’s revenue to grow 1.2% year on year to $282.2 million, slowing from the 4.5% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.34 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Covenant Logistics has missed Wall Street’s revenue estimates four times over the last two years.
Looking at Covenant Logistics’s peers in the transportation and logistics segment, some have already reported their Q1 results, giving us a hint as to what we can expect. FedEx delivered year-on-year revenue growth of 1.9%, beating analysts’ expectations by 0.9%, and CSX reported a revenue decline of 7%, falling short of estimates by 1.1%. FedEx traded down 6.3% following the results while CSX was up 1.4%.
Read our full analysis of FedEx’s results here and CSX’s results here.
Inflation has progressed towards the Fed’s 2% goal as of late, leading to strong stock market performance. Recent rate cuts and the 2024 Presidential election's conclusion added further sparks to the market, and while some of the transportation and logistics stocks have shown solid performance, the group has generally underperformed, with share prices down 11.3% on average over the last month. Covenant Logistics is down 20.7% during the same time and is heading into earnings with an average analyst price target of $32.67 (compared to the current share price of $18.32).
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