Covenant Logistics Group, headquartered in Chattanooga, Tennessee, revealed that its third-quarter performance felt the weight of a sluggish freight market, but the company remains confident in its “resilient operating model.”
In the third quarter, Covenant (NASDAQ: CVLG) reported adjusted earnings per share of $1.13, just one cent below the consensus estimate. Third-quarter revenue amounted to $288.7 million, falling short of analysts’ predictions of $293 million for the period. Total revenue for the quarter experienced a 7.4% year-over-year decline, with earnings per share dropping by 26% in the same period. The company’s total freight revenue decreased by 5% year-over-year to reach $253.3 million, while freight revenue per tractor per week witnessed a 3.9% increase, reaching $5,677. The expedited truckload segment revenue managed a 0.1% increase, hitting $91.6 million, while the dedicated segment revenue saw a decline of 10.5%, settling at $66.9 million.
Covenant’s managed freight segment reported third-quarter revenue of $69.7 million, marking an 11% decrease from the previous year. In contrast, the warehousing segment reported revenue of $25 million during the quarter, showing a robust year-over-year increase of 14.8%.